New Hampshire Governor Signs Pet Insurance Standards Into Law

New Hampshire Governor Chris Sununu has signed into law legislation establishing pet insurance regulations.

“Pets become family,” said Governor Chris Sununu. “This law will provide Granite Staters with peace of mind and opportunity to ensure their pets can receive the best care possible. New Hampshire is continuing to fulfill our promise of being the most pet-friendly state in the country.”

James Fox, property/casualty director at the New Hampshire Insurance Department, said the new legislation (HB249) establishes regulatory frameworks and consumer protections that are similar to those for other insurance products, “ensuring consistent, reliable definitions and transparent disclosure.”

The law is based on model legislation approved last August by the National Association of Insurance Commissioners (NAIC). The new law will take effect January 1, 2024.

New Hampshire joins California, Maine, Mississippi and Washington as states that have adopted the NAIC model.

The law offers flexibility by allowing a 15-day grace period for policyholders to change their minds and receive a full refund if they haven’t filed a claim.

The law sets clear definitions for terms used in pet insurance policies, such as chronic conditions, preexisting conditions, and wellness programs. Insurance companies must adhere to these definitions when dealing with consumer policies.

Other provisions include:

• Policies must explicitly state any exclusions, including preexisting conditions, hereditary disorders, congenital anomalies, or chronic conditions.
• Limitations such as waiting periods, deductibles, and policy limits must also be disclosed.
• Insurance companies cannot increase premiums or reduce coverage based on claims history or the pet’s age without informing the consumer.
• Regarding exclusions, consumers should be aware of preexisting conditions. They need to establish that such conditions are the responsibility of the insurance company and not their own.
• For accident coverage, waiting periods are prohibited, but they can be imposed (up to 30 days) for illnesses or orthopedic conditions, which can be waived with a medical examination. Renewal cannot be contingent on a medical examination.
• As with the sale of all insurance products, licensing and professional requirements apply to pet insurance sellers, who must complete necessary training and obtain a license from the insurance department.