NAIC Passes Pet Insurance Model Act.

* The National Association of Insurance Commissioners (NAIC) members passed a Pet Insurance Model Act to establish appropriate regulatory standards for the pet insurance industry, which has annual premiums of approximately $2.8 billion in total in-force premiums in 2021 (up over 30.5% from $2,175 billion in 2020) and over 4.41 million insured pets across North America, up 27.7% from over 3.45 million pets insured in 2020, according to the North American Pet Health Insurance Association.

"This model law establishes clear rules for the sale of pet insurance and provides important disclosures to pet owners interested in purchasing this product," said Beth Dwyer, Superintendent of Insurance for the Rhode Island Department of Business Regulation. "Now, it is up to the states to see if they would like to adopt or modify the model law for this regulatory framework to be in effect."

Key elements of the model include:

CONSUMER PROTECTIONS

The model codifies several consumer protections related to policy renewals, required disclosures of waiting periods, policy limits, conditions, benefit schedules, and more. Robust...