A new consumer protection law taking effect on January 1 will bring significant changes specifically to the pet insurance industry, reshaping how insurers operate and how customers evaluate coverage for their animals.
The legislation, known as HB 655, introduces stricter transparency requirements for pet insurance providers, responding to long-standing complaints about unclear policies, hidden exclusions and confusing reimbursement practices. Under the new rules, insurers must clearly disclose how claims are calculated, including whether reimbursements are based on actual veterinary bills, benefit schedules or other payment formulas. This information must be provided upfront, allowing pet owners to compare policies more accurately.
Another key change affects disclosures related to coverage conditions. Pet insurers will now be required to clearly outline all exclusions in their policies, with special attention to pre-existing conditions. Companies must also explain any medical exams required for enrollment, as well as waiting periods before coverage becomes active. These measures aim to prevent surprises when policyholders file claims and discover that treatments are not covered.
HB 655 also introduces a 30-day review or “free-look” period for pet insurance policies. During this window, consumers may cancel their policy and receive a refund, as long as no claims have been filed. This provision gives pet owners time to fully review the policy terms and decide whether the coverage aligns with their needs and their pet’s health history.
The law further restricts certain sales practices in the pet insurance market. Insurers will no longer be allowed to require customers to participate in wellness or health programs as a condition for obtaining pet insurance. This change seeks to ensure that access to coverage is not tied to unrelated or burdensome requirements.
In addition, insurance agents selling pet insurance will face new training obligations. Agents must receive specific instruction on pet insurance products, including detailed knowledge of pre-existing condition rules, waiting periods and policy limitations. The goal is to improve the quality of information provided to consumers at the point of sale.
Overall, HB 655 signals a tighter regulatory approach to pet insurance, prioritizing clarity, fairness and informed choice for pet owners navigating an increasingly popular but often misunderstood market.
