The proposed "Pet Insurance Act" introduces a new chapter in Title 27 of the General Laws, establishing a comprehensive legal framework for the sale and regulation of pet insurance in the state. This act applies to pet insurance policies issued to any resident of the state and those sold, solicited, negotiated, or offered within the state, clarifying that its specific provisions will take precedence over any conflicting general laws.

The act includes standardized definitions for key terms related to pet insurance, such as "chronic condition," "preexisting condition," "veterinary expenses," and "wellness program." It mandates that pet insurers disclose important information to consumers, including policy exclusions related to preexisting conditions, hereditary disorders, congenital anomalies, chronic conditions, and any other exclusions. Insurers must also provide clear information regarding waiting periods, coverage limitations, and the basis for determining claim payments.

The act allows pet insurers to exclude coverage for preexisting conditions and imposes limits on waiting periods for certain conditions, specifically not exceeding thirty days for illnesses or orthopedic conditions not resulting from an accident. It prohibits waiting periods for accidents and requires that coverage becomes effective at 12:01 a.m. on the second calendar day after purchase, with certain exceptions.

Additionally, the act sets regulations for insurance producers, requiring them to be appropriately licensed and to complete designated training on topics such as preexisting conditions, waiting periods, and the differences between pet insurance and noninsurance wellness programs. It recognizes wellness benefits included in pet insurance policies as insurance and outlines penalties for violations of the new regulations.

The act is scheduled to take effect on January 1, 2026, aiming to enhance transparency and consumer protection in the pet insurance market.