The Maryland Insurance Administration has issued regulations for pet insurance companies, outlining new disclosure and notification requirements. These changes follow recent legislation that established the framework for pet insurance coverage.
Insurers must now inform policyholders about exclusions, limits on coverage, and other key provisions. This includes waiting periods, annual or lifetime policy limits, and the impact of a pet’s age, claims history, or relocation on coverage or premiums.
Carriers must also explain how benefits schedules are used to determine claim payments (see Dog Bite Liability Insurance Review).
Policyholders will have the right to cancel their policy within a specific period after it begins. The regulations define the method for calculating refunds if a policy is canceled.
The rules allow insurers to exclude coverage for preexisting conditions, provided consumers are properly notified. Insurers may also impose a 30-day waiting period for illnesses or conditions unrelated to accidents. However, this waiting period can be waived if a medical exam is completed.
The regulations also address wellness programs. Carriers must clearly define wellness programs and follow specific sales and marketing rules.
They cannot require consumers to join a wellness program as a condition for obtaining insurance coverage.
The Maryland Insurance Administration noted that no public comments were submitted during the open review period for the draft bulletin. These regulations will take effect on Jan. 1, 2025.
As a pet owner, you’ve likely found that the most common costs you have for your animals, particularly young pets, are their routine exams. While some insurers cover exam costs, others do not (see What Does Pet Insurance Cover and Not Cover?).
With some insurers, you may have to opt for a more expensive monthly premium to get them included. While such preventative treatment is a common expense, it’s worthwhile to do the math and see if it actually saves you any money. The money you have to add to your monthly premium may be more than your out-of-pocket cost for 1 or 2 annual checkups, depending on the insurance provider and its fees.
If your pet is part of a breed that has a greater risk for a particular medical issue, you’ll want to make sure that you choose a provider that covers breed-specific and genetic conditions. If you have a purebred pet, research the breed to see if there are any conditions you should know about (see Global Pet Insurance Market Review).
