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 "wellness program." The act ensures that all applicable state insurance laws remain in effect, while the specific provisions of this act will take precedence over any general laws that may apply to pet insurance. Additionally, the act outlines consumer protections, including mandatory disclosures regarding exclusions, waiting periods, and the basis for claim payments, which must be clearly communicated to policyholders.

The bill also delineates the responsibilities of pet insurers and insurance producers, requiring them to provide training on key aspects of pet insurance, including the differences between insurance and wellness programs. It prohibits insurers from marketing wellness programs as pet insurance and mandates that any wellness benefits included in a policy be classified as insurance. Furthermore, the act empowers the Department of Banking and Insurance to enforce penalties for violations and allows for the adoption of rules and regulations to implement the act's provisions. Overall, the Pet Insurance Act aims to enhance transparency and consumer protection in the pet insurance market.