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 also stipulates that insurers must disclose important information to consumers, including any exclusions related to preexisting conditions, hereditary disorders, congenital anomalies, or chronic conditions. Additionally, it requires that waiting periods for coverage not exceed 30 days for illnesses or orthopedic conditions, and prohibits waiting periods for accidents.

Furthermore, the bill emphasizes the need for transparency in distinguishing pet wellness programs from pet insurance policies, ensuring that consumers are not misled about the nature of the services provided. It outlines training requirements for insurance producers to ensure they are well-informed about the nuances of pet insurance, including the differences between insurance and wellness programs. The act also grants the Department of Banking and Insurance the authority to enforce penalties for violations and to adopt regulations to implement the act's provisions. Overall, the Pet Insurance Act aims to enhance consumer protection and clarity in the pet insurance market.