California is one of the few states that have added new provisions to pet insurance, which includes aquatics. The new law is increasing consumer protections for pet insurance. The pet insurers are now required by law to disclose important information regarding their policies, standardize definitions, and provide consumers with a 30-day “free look” period, under a bill signed into law by California Gov. Jerry Brown on Tuesday.
According to the California Department of Insurance the law is the first of its kind in regard to pet insurance in the nation. AB 2056 will go into effect July 1, 2015. Consumers are expected to spend 15 billion on veterinary care (including aquatics) in 2015 alone and the pet insurance industry expected to reach $750 million by 2015. Pet insurance is big business as noted by the above figures.
The new law requires pet insurers to disclose information regarding their policies like benefits, pre-existing condition limitations, and a clear explanation of limitations of coverage including coinsurance, waiting periods, deductibles and annual or lifetime policy limits. The consumer can decide if they don’t like what they find and they have up to 30 days to return the policy for a full refund.