Consumer Law Protection Extends to Pet Insurance
We lavish our pets with affection and love. They give us joy and make us smile. So it makes sense that most owners would pay thousands of dollars to ensure that their pets receive the best medical care when sick or injured. To help alleviate higher costs of medical bills for pets, there is a growing trend to purchase pet insurance. Currently, more than 200,000 California pets are insured. By 2015, the pet industry in California is expected to reach $750 million.
To protect the growing number of owners who are purchasing pet insurance, Governor Jerry Brown signed Assembly Bill No 2056. “AB 2056 is an important first step toward protecting consumers participating in a rapidly growing industry,” California Assemblyman Matt Dababneh said. “[It] will help consumers limit their financial risk while offering important protections currently absent from the pet insurance marketplace.” This is the first law in the nation to regulate the pet industry. Assembly Bill No 2056 requires disclosure of baseline information regarding policies such as reimbursement benefits and pre-existing condition limitations, to name a few. The new law also provides a 30-day “free look” period in which a pet insurance policy can be canceled for a full refund.