The National Association of Insurance Commissioners (“NAIC”) has lately handed the Pet Insurance Model Act (the “Act”). The NAIC’s passing of the Act follows a continued improve in annual premiums in reference to pet insurance coverage insurance policies.
The Act gives a complete authorized framework, which incorporates shopper protections and disclosure necessities, inside which pet insurance coverage could also be bought in states that undertake the Act. Noteworthy provisions of the Act embody:
- Preexisting Conditions: A pet insurer (“Insurer”) might exclude a number of preexisting circumstances. However, any situation for which protection was supplied might not be excluded on renewal of a coverage. In addition, the Insurer bears the burden of proving such exclusion exists. Finally, an Insurer shall not require an examination at renewal.
- Required Disclosures: An Insurer is required to supply customers with the best to look at and return a pet insurance coverage coverage. Unless a declare has been filed, a shopper could have 15 days from the date the patron acquired to coverage to evaluate and return it. If returned, an Insurer shall return any premium paid inside 30 days. In addition, an Insurer shall open up to the patron a abstract description of the idea or method upon which the Insurer determines claims funds, profit schedules, required features of medical examinations, if relevant, and any ready intervals and the necessities relevant to them.
- Waiting Period: An Insurer might impose a ready interval to not exceed 30 days. An Insurer is prohibited from denying protection ensuing from an accident throughout such ready interval.
- Sales Practices for Wellness Program: The Act prohibits an Insurer from promoting a wellness program as pet insurance coverage and the merchandise or coverages shall not duplicate merchandise or coverages obtainable by way of a pet insurance coverage coverage.
- Insurance Producer Training: The Act requires producers to finish at the very least ten hours of pre-licensing or persevering with schooling hours.
The Pet Insurance Model Act may be discovered right here.