The proposed "Pet Insurance Act" establishes a new chapter in Title 27 of the General Laws, creating a regulatory framework for the sale and regulation of pet insurance in the state. The act aims to promote public welfare by providing a comprehensive legal structure for pet insurance policies, which must be issued to residents of the state and sold, solicited, negotiated, or offered within the state. It specifies that existing insurance laws remain applicable, but the provisions of this chapter will take precedence over any conflicting general laws.

Key definitions are included in the act, such as "chronic condition," "preexisting condition," and "wellness program," which must be clearly defined in pet insurance policies. The act mandates that pet insurers disclose essential information to consumers, including exclusions related to preexisting conditions, waiting periods, and the basis for claim payments. It allows for exclusions based on preexisting conditions and sets limits on waiting periods, which cannot exceed thirty days for illnesses or orthopedic conditions not resulting from an accident.

The act also outlines specific requirements for insurance producers, including the necessity of appropriate licensing and completion of training on various topics related to pet insurance, such as preexisting conditions and the differences between pet insurance and noninsurance wellness programs. It clarifies that wellness benefits included in pet insurance policies are considered insurance and introduces penalties for violations of the new regulations.

The act is scheduled to take effect on January 1, 2026, with the goal of enhancing consumer protection and ensuring informed practices within the pet insurance market.