The bill introduces Chapter 82, "PET INSURANCE ACT," to Title 27 of the General Laws, aimed at regulating pet insurance policies in the state. It defines key terms related to pet insurance, such as "chronic condition," "congenital anomaly," and "preexisting condition," and specifies that the chapter takes precedence over general provisions of state insurance laws. The bill requires pet insurers to disclose information about policy exclusions, coverage limitations, and changes in coverage or premiums due to various factors. It also establishes a 15-day "free look" period during which consumers can return the policy for a full refund, provided no claim has been made, and this right must be clearly stated on the policy documents.

The bill further mandates that pet insurers clearly disclose the basis for determining claim payments, including the use of benefit schedules or usual and customary fees, both within the policy and on their website. It requires disclosure of any medical examinations needed for coverage and the exclusion of preexisting conditions, as well as the prominent disclosure of waiting periods before policy purchase. Insurers must provide a summary of policy provisions in a separate document and include contact information in boldface type with the policy. The bill also addresses the sales practices for wellness programs, prohibiting their marketing as insurance and requiring clear disclosures that they are not insurance. Insurance producers must be licensed and trained in pet insurance products, with violations subject to penalties. The act is set to take effect on January 1, 2025.