The Maryland Insurance Administration has outlined new regulations and notification requirements for insurers offering pet insurance, following legislation passed earlier this year. The rules establish a framework for pet insurance coverage in the state.
According to the regulations, insurers will need to provide detailed disclosures regarding policy exclusions and limitations, including waiting periods, annual or lifetime policy limits, and how factors such as claims history, a pet’s age, or relocation affect coverage or premiums.
Carriers must also explain the waiting periods and the requirements associated with them, as well as the benefits schedule used to calculate claim payments.
The regulations stipulate that policyholders have the right to cancel a policy within a specified number of days after it takes effect. Insurers must also follow a set formula to determine refunds in the event of a cancellation.
A report from AM Best noted that the rules allow insurers to exclude coverage for preexisting conditions, provided they notify consumers of these exclusions. Policies may impose a 30-day waiting period for illnesses and non-accident-related conditions, but insurers must allow this waiting period to be waived if the pet undergoes a medical examination.
Additional provisions address wellness programs, including their definitions and the sales and marketing rules surrounding them. Insurers will not be permitted to require policyholders to enroll in a wellness program as a condition for obtaining coverage.
The Maryland Insurance Administration noted that no comments were received during the public feedback period for the draft bulletin. The new regulations are set to take effect on Jan. 1, 2025.
The regulatory changes align with similar updates in other states. In September, California revised its pet insurance regulations to include additional notification requirements, define standards for wellness programs, and allow for exclusions related to preexisting conditions.
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