Pet insurance is a property insurance policy that provides coverage for accidents and illnesses of pets. Premiums paid depend on factors related to the pet being insured. These factors include species of animal, breed, gender, age, location, and the coverages and deductible chosen. Most pet insurance policies are reimbursement plans, which provide repayment to a person for covered expenses after they have met their deductible.

Pet wellness programs, also known as preventive plans, provide noninsurance benefits in the policy form. This is often a reimbursement for commonly needed procedures, such as vaccination and neutering.

In 2022, the National Association of Insurance Commissioners (NAIC) adopted a model act related to pet insurance—#633. The model law addresses pet wellness programs, preexisting conditions, consumer protections, and training for insurance producers.

Washington State does not have laws and rules specific to pet insurance policies or those who sell pet insurance.

Certain requirements on insurance producers, and insurance policies related to pet insurance sold, solicited, negotiated, or offered in Washington State are established based on the NAIC's Pet Insurance Model Act.

Specific terms related to pet insurance are defined and are required to be included, if used, in pet insurance policies sold. These terms include chronic condition, congenital anomaly, hereditary disorder, orthopedic, preexisting condition, renewal, veterinary expenses, waiting period, and wellness program.

Pet insurers shall disclose certain information on exclusions, limitations, demographic factors effecting premium cost, and whether the policy underwriters differ from the company selling the policy.

Insurance applicants have 15 days to examine and return the policy, certificate, or endorsement, to qualify for a refund.

Exclusions for preexisting conditions may be issued in a policy, with burden of proof on the insurer to show the preexisting condition exclusion applies. Initial pet insurance policies covering illnesses or orthopedic conditions may have a 30-day waiting period before enactment, which may be waived after a veterinary examination. A waiting period for accident coverage is prohibited. Renewals cannot be contingent on a veterinary examination.

Certain requirements are established regarding the marketing of wellness program by insurers and insurance producers. Participating in a wellness program cannot be a requirement for buying pet insurance. 

All insurance producers selling, soliciting, or negotiating a pet insurance product in the state must be appropriately licensed and trained.  

PRO: Pet insurance is more popular than it has ever been before and there are significant expenses associated with having a pet. Washington State Office of the Insurance Commissioner (OIC) has been working with the industry on this. The market for pet insurance is expected to grow.  As regulators, this bill shows progress in getting ahead of that. Trupanion is a Seattle-based company and one of the largest pet insurers in the industry. Trupanion worked with the NAIC work group to develop this model act, in which the OIC also participated. The model act was just adopted in August 2022. About 160 million cats and dogs are alive today, in which 3% are insured. Not everyone can afford all the medical options available to their pet. This bill mandates consumer disclosure. This pet insurance industry does a good job today, but setting this floor will help the industry. The bill provides consistency for definitions across the industry. This bill requires every agent selling this product to be properly licensed and trained. This bill is a result of collaborative effort between OIC and the industry and the industry supports it.