Mississippi establishes legal framework for pet insurance

The Magnolia State has adopted a new law regulating the sale of pet insurance after the signature of Senate Bill 2228 by Governor Tate Reeves.

The new legislation will oblige insurance companies to include various levels of details in the policies regarding coverage, exclusions, deductibles, and payment limits when it comes into effect on 1 July 2023.

All insurers will also be required to disclose exclusion information about preexisting conditions, hereditary disorders, congenital anomalies, or any chronic diseases.

In a bulletin issued by Mississippi Insurance Commissioner Mike Chaney, the document informs that customers can pick one-size-fits-all type plans, as well as different levels of coverage through various carriers.

A report by consumer NGO Consumer Reports noted that the average accident and illness premium cost per year in 2020 for a dog was $594 (€536) and $342 (€292) for a cat. 

The North American Pet Health Insurance Association (NAPHIA) believes that in 2021 there were 4.41 million insured pets in the country.

Other state regulations 

In August 2022, The National Association of Insurance Commissioners (NAIC) approved a model law setting regulatory standards for companies operating in the sector.

Maine adopted the so-called Pet Insurance Act on 1 January 2023, introducing requirements for pet insurance companies and agents. The new legislation limits the use of waiting periods that must transpire before some or all coverage begins. 

“Waiting periods can only be used for new business, not renewal policies. Also, waiting periods are not allowed for accident-related injuries or illnesses; for other claims, the waiting period cannot exceed 30 days,” said the government. 

Delaying the effective date of a policy for the sole purpose of delaying coverage is not permitted as per the new state regulation.  

The new rules require all policies to give insureds the right to examine their policy, to return it for any reason within fifteen days after receipt, and to receive a full refund. The text establishes that a disclosure notifying this specific right must appear on the first page of the policy.