The Pet Insurance Act establishes a comprehensive legal framework for the sale of pet insurance in New Jersey, aimed at promoting public welfare. It mandates that pet insurance policies issued to residents must comply with specific requirements, including clear definitions of terms such as "preexisting condition," "chronic condition," and "pet insurance." The act emphasizes consumer protection by requiring insurers to disclose any exclusions related to preexisting conditions, hereditary disorders, congenital anomalies, and chronic conditions. Additionally, it stipulates that waiting periods for coverage cannot exceed 30 days for illnesses or orthopedic conditions, and prohibits waiting periods for accidents. Insurers must also provide a clear summary of policy provisions and ensure that consumers can easily access this information.

Furthermore, the act differentiates pet wellness programs from pet insurance, ensuring that consumers are not misled about the nature of the services provided. It requires that wellness programs be marketed separately and not as insurance, with distinct terms and conditions. The bill also imposes training requirements for insurance producers to ensure they are knowledgeable about pet insurance policies and can effectively communicate this information to consumers. The Department of Banking and Insurance is authorized to enforce penalties for violations of the act and to adopt necessary regulations to implement its provisions. The act will take effect 12 months after its enactment.