PET INSURANCE
Maryland Outlines Pet Insurance Regulations, Notification Requirements
BALTIMORE //BestWire// - The Maryland Insurance Administration laid out regulations and notification requirements for insurance carriers selling pet insurance following legislation passed earlier this year that established the framework for coverage.
Carriers will be required to disclose and issue notices regarding exclusions; provisions that limit coverage, including waiting periods and annual or lifetime policy limits; how claims history, the pet’s age and relocating affect coverage or premiums; waiting periods and requirements pertaining to waiting periods; and the benefits schedule used to determine claim payments.
Additionally, carriers must relay that consumers have a right to cancel a policy within days after its inception. The regulations also set the formula for determining a refund after cancellation.
Carriers will be allowed to exclude coverage due to a preexisting condition, as long as consumers are properly notified, the insurance administration said. The regulations also allow policies to impose a 30-day waiting period for illnesses and conditions that do not arise from an accident, so long as the carrier allows the waiting period to be waived following a medical examination.
Other portions of the regulation detail definitions for wellness programs, as well as sales and marketing requirements around wellness programs. Carriers will be prohibited from requiring enrollment in a wellness program as a condition of placing coverage.
The administration said it did not receive any feedback on the bulletin’s draft during an open comment period.
The new laws go into effect Jan. 1, 2025.
In September, California updated its pet insurance regulations to add more notification requirements, set standards around wellness programs and allow for exclusions based on preexisting conditions (BestWire, Sept. 27, 2024).
(By Steve Hallo, senior associate editor, BestWire: Steve.Hallo@ambest.com)