The proposed "Pet Insurance Act" introduces a new chapter in Title 27 of the General Laws, establishing a regulatory framework for the sale and regulation of pet insurance in the state. The act aims to promote public welfare by creating a comprehensive legal framework for pet insurance policies issued to residents. It specifies that existing insurance laws will continue to apply, but the provisions of this chapter will take precedence in case of any conflicts.

Key terms related to pet insurance, such as "chronic condition," "preexisting condition," and "veterinarian," are defined to enhance clarity and consistency in policy language. The act mandates that pet insurers provide specific disclosures to consumers regarding exclusions, waiting periods, and the basis for claim payments. It allows consumers a 15-day examination period to review and return policies if unsatisfied.

Additionally, the act requires that pet insurance producers be appropriately licensed and complete training on relevant topics before selling pet insurance products. It clarifies that wellness benefits included in pet insurance policies are considered insurance and outlines that violations of the regulations will be subject to penalties. The act is set to take effect on January 1, 2026.