The proposed "Pet Insurance Act" introduces a new chapter to Title 27 of the General Laws, establishing a regulatory framework for pet insurance sales within the state. This chapter clarifies that while existing insurance laws apply, its specific provisions will take precedence over general laws related to pet insurance. It includes detailed definitions for terms such as "chronic condition," "preexisting condition," and "waiting period," ensuring consistency in their use by insurers. The bill mandates that pet insurers disclose critical information to consumers, including exclusions for preexisting conditions and limitations on coverage, while also granting consumers a fifteen-day "free look" period to review and return their policies for a full refund.

Additionally, the bill outlines requirements for transparency and consumer protection, such as providing a summary of claim payment determinations and ensuring clear communication of medical examination requirements and waiting periods prior to purchase. It prohibits misleading marketing practices for wellness programs associated with pet insurance and requires insurance producers to undergo training on relevant topics before selling these products. The act is set to take effect on January 1, 2026, and establishes penalties for violations of its provisions, thereby enhancing consumer rights and clarity in the pet insurance market.