Monday, July 14, 2014
California could be the first state to start regulating the growing market for pet insurance under newly proposed legislation. A bill by Assemblyman Matt Dababneh (D-Los Angeles) would set guidelines for the unregulated pet insurance industry.
The legislation was driven by snowballing complaints to the state Department of Insurance regarding pet insurance policies that consumers deem as confusing or misleading. “Pet insurance is still the Wild West, and that’s what we’re trying to rein in.”
The new legislation would make policies more translucent and give insurance regulators a greater ability to oversee the plans. Policyholders would get a 30-day trial period where they would have the option to return their coverage. Although only about one percent of pet owners hold policies, they are becoming increasingly popular as treatments become more expensive and pets are treated as members of the family.
See Pet Insurance Bill Aims to Regulate Industry in Calif., KCRA.com, July 12, 2014.