California First State to Regulate Pet Insurance

New health insurance rules that have gripped California have now trickled down to affect care for pets as well. California Governor Jerry Brown has signed a bill requiring that those providing pet insurance must add disclosure rules. Starting July 15, insurance policies must be clearly explained to pet owners, making sure that coverage limits that disqualify pre-existing conditions are outlined.

This clarity will allow pet owners to pick what insurance works for their pet before being slammed with unreasonable veterinary bills for services. The law will also require that pet owners be allowed a trial period to try out their insurance. If a pet owner is dissatisfied with insurance coverage, they will be able to return the policy for a full refund. Insurance companies that do not comply can be fined up to $10,000.

Bill Needed to Curb Unclear Policies

This bill is in response to many of those that have pet insurance policies that are misleading and confusing, causing unexpected expenses and claim denials. Many nonprofit organizations have seen a rise of those with pet insurance that need assistance after unexpected exemptions in their pet's insurance policy.

California is home to the highest number of insured pets, and this legislation will be the first of its kind in the United States. It was brought to the attention of California legislators, only to be vetoed by then-governor Arnold Schwarzenegger.

Since pet insurance is projected to become a $750 million industry by 2015, early regulation can help ensure that large-scale problems to not become commonplace. It is estimated that 1% of pet owners have pet insurance, but that $15 billion each year is spent on veterinary services.