AVMA: Association of insurance commissioners passes Pet Insurance Model Act
The American Veterinary Medical Association (AVMA) highlighted this month a recent announcement from the National Association of Insurance Commissioners that its members have passed a Pet Insurance Model Act to establish regulatory guidance for states.
The AVMA provided comments and input during the drafting process for the model state law.
In 2021, the pet health insurance industry provided insurance to about 4 million pets in the United States, up from 3.1 million pets in 2020, according to the North American Pet Health Insurance Association. The U.S. industry had premiums of about $2.5 billion in 2021, up from $2 billion in 2020, according to a story from the AVMA.
Beth Dwyer, superintendent of insurance for the Rhode Island Department of Business Regulation, said in a release that the model law establishes clear rules for the sale of pet insurance and provides important disclosures to pet owners interested in purchasing this product. “Now, it is up to the states to see if they would like to adopt or modify the model law for this regulatory framework to be in effect,” she said.
Key elements of the model include codifying consumer protections in policy renewals, required disclosures of waiting periods, policy limits, conditions and benefit schedules. The model act limits how insurers can deny pet insurance claims related to preexisting conditions of covered pets. It would also require insurers and sellers of insurance to differentiate noninsurance pet wellness programs from insurance policies.
Visit the National Association of Insurance Commissioners website to view the model act.
AVMA endorses the concept of pet health insurance that provides coverage to help defray the cost of veterinary medical care and encourages veterinary teams to proactively educate their clients about the existence of such a resource. Learn more about the AVMA’s stance and weigh in on its policy on their website.
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