Legislation update: new pet insurance laws in the US

According to the North American Pet Health Insurance Association (NAPHIA), total premiums sold in the US in 2023 grew by 22% to $3.9 billion (€3.6B).

The number of pets insured is leading some states to further regulate the business to strengthen policy frameworks and increase transparency for consumer protection.

Pennsylvania

In June, Governor Josh Shapiro signed pet insurance legislation HB 660 to protect pet parents who purchase pet insurance and address emergency medical costs.

“This legislation will create a comprehensive legal framework for the sale, solicitation and negotiation of pet insurance policies within our state, leaving no space for hidden fees or confusion of coverage,” says bill sponsor Michael H. Schlossberg.

New York

The Empire State is considering 2 bills (A.8276 and S.7845) that would amend the state’s current insurance law by borrowing features from the National Association of Insurance Commissioners (NAIC) Model Pet Insurance Act.

According to Assemblywoman Pamela Hunter, Senator Neil Breslin and the bill’s sponsors, if passed, the regulation would “create uniform definitions, offer better protection to owners and generally reduce regulatory confusion.”

It is expected to come into effect 180 days after passing. However, it was returned to the Assembly in May for further discussion.

New Jersey

The ‘Pet Insurance Act’ bill (A1203) has been introduced to the New Jersey Senate in a bid to make policies transparent.

Some of the provisions of the new bill, sponsored by Assemblymembers Rosy Bagolie, Carol Murphy, Garnet Hall and Shanique Speight, mandate that pet insurance companies clearly disclose exclusions, waiting periods, and any changes to coverage or premiums based on the pet’s age, location or past claims.

It also establishes disclosure of formulas that determine payment claims and prohibits veterinary examination before a policy renewal.

The law was referred to the Senate Commerce Committee in May 2024.

New Hampshire

The New English state’s new pet insurance regulations came into effect on 1 January 2024.

The regulations provide consistent and reliable definitions of insurance terms and mandate transparent disclosure. They also offer a 15-day grace period for policyholders to receive a full refund if they change their minds and haven’t sought any claims.