Rhode Island Moves to Leash Pet Insurers | Insurify
Pet parents in
The state's new Pet Insurance Act establishes disclosure requirements for pet insurance policies, maximums for waiting periods, a 15-day "free look" period, and a way for consumers to avoid waiting periods altogether.
"Our pets are members of our families, and with veterinary care becoming so costly, more people are opting to buy insurance policies to keep them safe and healthy," said act co-sponsor Rep.
The new law will take effect
Like other states,
The law also allows only a 15-day "free look" trial period for new policies; most states have a 30-day free look period.
Provisions of
Pet insurers can't impose waiting periods for accident coverage.Waiting periods for illnesses and orthopedic conditions can't exceed 30 days.Insurers must disclose any waiting periods and how they work before a consumer buys a policy.Insurers must allow policy buyers to avoid waiting periods altogether by having the covered pet submit to a veterinary exam.Policies must clearly disclose exclusions for pre-existing conditions, hereditary disorders, congenital defects, and chronic conditions.Insurers must disclose whether claim history, pet age, or a change of location could affect premiums.If the underwriting company's name differs from the name an insurer uses to market and sell policies, companies must disclose the difference.
And pet insurance companies will no longer be able to charge up-front premiums before policies go into effect.
What's next: More states weigh pet insurance regulation
Because the law generally considers pets to be a type of property, most states regulate pet insurance under their property and casualty laws. But a growing number of states are considering legislation to specifically regulate pet insurance.
Pet insurance regulation is catching on faster than most model laws,
"When pet insurers see the larger states adopting a model pretty much as is, they can see where the trend is going," he said. "Carriers look for consistency. It creates a better consumer experience and improves customer service."
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