Bill > S2034

This bill, known as the "Pet Insurance Act," establishes a comprehensive legal framework for selling pet insurance in New Jersey, applying to policies issued to residents and sold within the state, with its specific provisions superseding any general insurance laws. It defines key terms such as "chronic condition" (a condition that can be managed but not cured), "congenital anomaly or disorder" (a condition present from birth), "hereditary disorder" (a genetically transmitted abnormality), "preexisting condition" (a condition for which a pet received advice or treatment before coverage began), and "waiting period" (a set time before coverage starts). The act mandates that insurers clearly disclose specific policy exclusions like preexisting conditions, hereditary disorders, congenital anomalies, or chronic conditions, as well as any limitations on coverage, changes in premiums based on claim history or pet age, and the basis for claim payments, whether through a benefit schedule or usual and customary fees. It also requires a 30-day "free look" period for policyholders to review and return a policy for a full refund if unsatisfied, and prohibits marketing wellness programs as insurance, ensuring they are separate from pet insurance policies and do not duplicate coverage. Furthermore, insurance producers must complete specific training on pet insurance before selling it, covering topics like preexisting conditions, waiting periods, and the differences between insurance and wellness programs, and must hold an appropriate insurance license. The Department of Banking and Insurance (the "Department") is empowered to enforce penalties for violations and adopt necessary regulations.

Business and Industry

https://www.njleg.state.nj.us/bill-search/2024/S2034