(a)An insurer transacting pet insurance in California shall disclose all of the following to consumers:
(1)If the policy excludes coverage due to any of the following:
(A)A preexisting condition.
(B)A hereditary disorder.
(C)A congenital anomaly or disorder.
(2)If the policy includes any other exclusion, the following statement: “Other exclusions may
apply. Please refer to the exclusions section of the policy for more information.”
(3)Any policy provision that limits coverage through a waiting period, a deductible, coinsurance, or an annual or lifetime policy limit.
(4)Whether the insurer reduces coverage or increases premiums based on the insured’s claim history, the age of the covered pet, or a change in the geographic location of the insured.
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(a)
An insurer transacting pet insurance in California shall disclose all of the following to consumers:
(1)
If the policy excludes coverage due to any of the following:
(A)
A preexisting condition.
(B)
A hereditary disorder.
(C)
A congenital anomaly or disorder.
(D)
A chronic condition.
(2)
If the policy includes any other exclusion, the following statement: “Other exclusions may
apply. Please refer to the exclusions section of the policy for more information.”
(3)
Any policy provision that limits coverage through a waiting period, a deductible, coinsurance, or an annual or lifetime policy limit.
(4)
Whether the insurer reduces coverage or increases premiums based on the insured’s claim history, the age of the covered pet, or a change in the geographic location of the insured.
(b)
(1)
If a pet insurer uses any of the terms in paragraph (1) of subdivision (a) in a policy of pet insurance, the insurer shall use the definition of those terms as set forth in Section 12880 and include the definitions of the terms in the policy. The pet insurer shall also make those
definitions available before the sale of a policy, through a link on the main page of the insurer’s internet website, or as a hard copy if hard copy policy documents are requested by or provided to a consumer.
(2)
This subdivision and Section 12880 do not prohibit or limit the types of exclusions pet insurers may use in their policies. This subdivision does not require pet insurers to have any of the limitations or exclusions defined in Section 12880.
(c)
Before the sale of a policy, a pet insurer shall clearly disclose a summary description of the basis or formula on which the insurer determines claim payments under a pet insurance policy within the policy and through a link on the main page of the insurer’s internet website, or as a hard copy if hard copy policy documents are
requested by or provided to a consumer.
(d)
A pet insurer that uses a benefit schedule to determine claim payment under a pet insurance policy shall do both of the following before the sale of a policy:
(1)
Clearly disclose the applicable benefit schedule in the policy.
(2)
Disclose all benefit schedules used by the insurer under its pet insurance policies through a link on the main page of the insurer’s internet website, or as a hard copy if hard copy policy documents are requested by or provided to a consumer.
(e)
A pet insurer that determines claim payments under a pet insurance policy based on usual and customary fees, or any other reimbursement limitation based
on prevailing veterinary service provider charges, shall do both of the following before the sale of a policy:
(1)
Include a usual and customary fee limitation provision in the policy that clearly describes the insurer’s basis for determining usual and customary fees and how that basis is applied in calculating claim payments.
(2)
Disclose the insurer’s basis for determining usual and customary fees through a link on the main page of the insurer’s
internet website, or as a hard copy if hard copy policy documents are requested by or provided to a consumer.
(f)
If a medical examination by a licensed veterinarian is required to effectuate coverage, the pet insurer shall clearly and conspicuously disclose the required aspects of the examination before a policy purchase and disclose that examination documentation may result in a preexisting condition exclusion before the sale of a policy.
(g)
Waiting periods and the requirements applicable to waiting periods shall be clearly and prominently disclosed to consumers before a policy purchase.
(h)
The insurer shall create a summary of all policy provisions required in subdivisions (a) to (g), inclusive, and
subdivision (j) into a separate document titled “Insurer Disclosure of Important Policy Provisions.”
(i)
The insurer shall post the “Insurer Disclosure of Important Policy Provisions” document required in subdivision (h) through a link on the main page of the insurer’s internet website, or as a hard copy if hard copy policy documents are requested by or provided to a consumer.
(j)
(1)
In connection with the issuance of a new pet insurance policy, the insurer shall provide the insured with a copy of the “Insurer Disclosure of Important Policy Provisions” document required pursuant to subdivision (h) in at least 12-point type when it delivers the policy.
(2)
In addition, the pet insurance policy
shall have clearly printed thereon or attached thereto a notice stating that, after receipt of the policy by the owner, the policy may be returned by the insured for cancellation by delivering it or mailing it to the insurer or to the agent through whom it was purchased.
(A)
The period of time set forth by the insurer for return of the policy shall be clearly stated on the notice, and this free look period shall be not less than 30 days. The insured may return the policy to the insurer or the agent through whom the policy was purchased at any time during the free look period specified in the notice.
(B)
The delivery or mailing of the policy by the insured pursuant to this paragraph shall void the policy from the beginning, and the parties shall be in the same position as if a policy or
contract had not been issued.
(C)
All premiums paid and any policy fee paid for the policy shall be refunded to the insured within 30 days from the date that the insurer is notified of the cancellation. However, if the insurer has paid any claim, or has advised the insured in writing that a claim will be paid, the 30-day free look right pursuant to this paragraph is inapplicable and instead the policy provisions relating to cancellation apply to any refund.
(k)
The disclosures required in this section shall be in addition to any other disclosure requirements required by law or regulation.