Added definitions for orthopedic, producer, renewal, veterinary dental care, wellness program, amended definitions for pet insurance, veterinarian, veterinary expenses.
Pet insurer should disclose whether coverage is reduced/premiums are increased due to claims history, age of the pet, or change in the geographic location of the insured.
Insurer should include definitions/links of any terms used in the pet insurance policy.
Before selling a policy, insurer should disclose the basis on which it determines claim payments under the pet insurance policy, via internet website, or in hard copy format.
If a medical examination by a licensed veterinarian is required in order to effectuate coverage, the pet insurer should disclose the exam requirements to the consumer.
The pet insurance insurer should also disclose to the consumer, that resulting documentation may result in a preexisting condition exclusion before sale of a policy.
Additionally, the waiting periods and the requirements applicable to waiting periods should be clearly and prominently disclosed to consumers before a policy purchase.
Issuance of Policies
After disclosure, pet insurer may issue policy that excludes coverage due to preexisting conditions, but a covered condition will not be pre-existing condition on policy renewal.
May also issue policies that impose waiting periods upon the start of coverage that do not exceed 30 days for illnesses/orthopedic conditions not resulting from an accident.
Waiting period does not apply to renewal of existing coverage, veterinarian exam is not required for renewal; prescriptive, wellness benefits must comply with insurance laws.
Insurer/producer will not market a wellness program as pet insurance, and is separate from marketing materials for pet insurance; bill listed criteria for wellness programs.
Coverages included in insurance contract described as wellness benefits are insurance.
If a wellness program undertakes to indemnify a person against loss, damage, liability due to a contingent or unknown event, it is transacting insurance, subject to this code.
Legislative History
On Feb. 15, 2024, bill introduced in Senate; on May 23, 2024, bill passed in Senate.
On May 24, 2024, bill sent to Assembly; on Aug. 28, 2024, bill passed in Assembly.
On Aug. 28, 2024, bill sent to Senate; on Aug. 29, 2024, amendments concurred in.
On Sep. 9, 2024, bill was enrolled and presented to the governor for review.
Effectiveness
No effective date specified; generally effective Jan. 1 after enactment, on Jan. 1, 2025.
Sep. 26, 2024 CAL LEG Governor Approval
On Sep. 26, 2024, CAL LEG reported governor signed bill SB 1217, now Chapter 612.
