Florida introduced new regulations to define terms, require disclosures, and establish other regulatory standards for pet insurance and wellness programs.
House Bill 655, signed by Governor Ron DeSantis on April 18, expands the definition of property insurance to include pet insurance for accidents and illnesses.
A legislative analysis supports this update (see What Does Pet Insurance Cover and Not Cover?).
The law defines several terms, including chronic conditions, congenital anomalies, waiting periods, and wellness programs. If insurers adopt these definitions, they must use them exactly as written and provide them to policyholders.
Insurers are required to disclose exclusions for chronic conditions, congenital anomalies, hereditary disorders, and other specific limitations.
They must also explain coverage restrictions, premium changes, and claim payment methods, including any applicable fee schedules. Additionally, the law mandates a clear distinction between the underwriting company and the brand under which the insurance is sold (see What is the Cost of Pet Insurance).
Policyholders have a 30-day period to cancel their policy and receive a refund, provided no claims have been made.
The law permits insurers to exclude coverage for preexisting conditions if properly disclosed and allows waiting periods for certain conditions, again with full disclosure.
However, insurers cannot require medical examinations for renewals and cannot make participation in a wellness program a condition of insurance coverage (see TOP 10 Best Pet Insurance Companies).
Florida lawmakers also created clear guidelines to separate pet wellness programs from insurance policies. Any costs, terms, or products associated with a wellness program must remain distinct from pet insurance coverage.
If an insurance agent offers both pet insurance and wellness programs, the wellness program cannot overlap with any insurance product or coverage.
The costs of wellness programs must be presented separately and clearly from insurance policies, with distinct terms and conditions.
Florida is adding these regulations as the pet insurance market grows. Over the past five years, the market has expanded at an annual rate of 15% to 20%, reaching $3.9 bn in gross written premiums by the end of 2023.
In 2023, Florida represented 6.6% of gross written premiums and 6.2% of insured pets in the U.S. California led with 18.3% of pets and 20.1% of gross written premiums, according to the legislative analysis.
