The Pet Insurance Act establishes a comprehensive legal framework for the sale of pet insurance in New Jersey, aimed at promoting public welfare. The act 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." Insurers are required to disclose important information to consumers, including any exclusions related to preexisting conditions, hereditary disorders, congenital anomalies, or chronic conditions. Additionally, the act stipulates that waiting periods for coverage cannot exceed 30 days for certain conditions, and it prohibits insurers from requiring veterinary examinations for policy renewals.

The bill also emphasizes the need for transparency in distinguishing pet wellness programs from pet insurance policies to prevent consumer confusion. Insurers must provide clear disclosures regarding the nature of wellness programs, ensuring they are not marketed as insurance. Furthermore, the act includes training requirements for insurance producers to ensure they are knowledgeable about the specifics of pet insurance and can effectively communicate this information to consumers. The act will take effect 12 months after its enactment, and the Department of Banking and Insurance is authorized to adopt regulations to enforce its provisions.