California pet insurance rules tightened under bill signed by Gov. Newsom

A Bay Area lawmaker's bill to strengthen rules on pet insurance policies was signed into law Thursday by Gov. Gavin Newsom.

Senate Bill 1217 authored by state Sen. Steven Glazer (D-Orinda) will force pet insurers to provide more transparency regarding their coverage or premium changes based on the age of the pet or where it lives, according to a press statement from the Governor's Office.

Pet insurance can work differently compared with human health insurance in that some policies require payment for procedures upfront and pet owners are reimbursed. Other policies have different costs and restrictions for certain breeds and medical conditions.

The new law requires insurers to disclose whether a policy excludes coverage for pre-existing conditions, hereditary disorders, congenital defects for chronic conditions.

The bill also requires that insurers clearly distinguish between wellness programs and insurance and mandates that coverage be issued by the second day after insurers receive a completed application and payment. Examples of wellness programs would be dental procedures such as cleanings or surgical extractions which would not covered by most insurance policies.

Insurers are now prohibited from marketing a wellness program as pet insurance, and marketing materials for each would be separate, the bill says.

A second bill signed by Newsom on Thursday, SB 1233 by Sen. Scott Wilk (R-Santa Clarita), authorizes a California veterinary medical school to develop a high-quality, high-volume spay and neuter certification program to expand access to low and no-cost spay-neuter services.