The NAIC Model
States have jurisdiction over pet medical health insurance regulation.
The NAIC is a nonprofit, Kansas City, Missouri-based group for state insurance regulators. Its recent pet insurance model can have no direct effect on states’ rules, but states can use the model when developing their very own pet insurance laws and regulations.
Regulators generally classify pet insurance as a type of property and casualty insurance, and the panel that developed the model is an element of the NAIC’s Property and Casualty Insurance Committee The model itself doesn’t define pet insurance as either a health line or P&C line.
Up to now, the NAIC offered a general, “limited lines” approach to setting pet insurance rules. The approach was based on the model rules the NAIC has developed for easy products that individuals equivalent to travel agents or tennis club owners might sell as an additional.
In 2016, regulators decided that pet insurance was popular enough and complex enough to wish its own model.
The NAIC has based the brand new model on models for human supplemental medical health insurance, and it has designed the model mainly for coverage for family-owned dogs and cats.
The sample language in the brand new model shows what sorts of rules a state could set for policy elements equivalent to policy renewals, descriptions of conditions covered, descriptions of advantages provided, and descriptions of coverage limitations.
One other proposed provision shows how a state could regulate an issuer’s ability to disclaim advantages for treatments required to treat what could be a pet’s preexisting condition.