The Pet Insurance Industry in California Under New Regulations

petPets are getting their own health care reform act – now everybody is in the game!  A new bill was passed earlier this month by the California State Assembly.  This new law is under review by Governor Arnold Schwarzenegger, which requires insurance companies with veterinary care plans to now divulge much more information concerning the limitations of protection.

Regulations would demand insurance providers to offer the specifics of co-pays, lifetime benefit restrictions as well as limitations based upon pre-existing conditions on internet sites. Democratic Assemblyman Dave Jones is pushing the bill, AB2411, full steam ahead.

“It’s terrible to realize that the pet insurance premiums you have paid for years do not cover the full cost of veterinary care,” Jones said. “This bill provides transparency so that consumers can be fully informed of the exact terms of coverage, as well as any exclusions or limitations.”

Jones ended up being motivated to proceed with the legislation after listening to problems from individuals in regards to the payments these people were getting for veterinarian treatment under insurance policies.

The bill could alter the procedures of a number of name insurance companies, for instance Nationwide, which underwrites VPI Pet Insurance. Additionally there are Allianz (owned Fireman’s Fund) which underwrites ASPCA Pet Insurance, and Aetna who underwrites Pets Best Insurance.

Chris Middleton, the marketing director for PetsBest Insurance thinks it’s a great law, citing the new bill helps to educate customers by taking away the transparency with full disclosure.  

The pet insurance enterprise began in the early eighties and this will be one of the first regulations planning to manage the expanding marketplace.

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