The proposed "Pet Insurance Act" introduces a new chapter to Title 27 of the General Laws, establishing a regulatory framework for pet insurance policies sold to residents or delivered within the state. This chapter clarifies that while it governs pet insurance, existing insurance laws remain applicable unless explicitly overridden. Key definitions are provided for terms such as "chronic condition," "preexisting condition," and "veterinary expenses," ensuring uniformity in policy language. The bill mandates that pet insurers disclose critical information to consumers, including exclusions for preexisting conditions and limitations like waiting periods and deductibles. It also grants consumers a thirty-day "free look" period to review and return their policies for a full refund if unsatisfied, provided no claims have been filed.

Additionally, the bill outlines specific requirements for pet insurance policies, including the disclosure of claim payment bases, waiting periods, and necessary medical examinations. Insurers must provide clear contact information for customer service and guidance on seeking assistance. The legislation also addresses sales practices for wellness programs associated with pet insurance, prohibiting their marketing as insurance and requiring separate disclosures. Insurers are allowed to delay the effective date of coverage under certain conditions, and the act will take effect on January 1, 2026. Overall, the bill aims to enhance transparency and consumer protection in the pet insurance market while establishing clear guidelines for insurers.