The Maryland Insurance Administration recently issued new regulations, imposing stricter disclosure and notification requirements on pet insurance companies. The new rules will come into effect on January 1, 2025, aiming to provide consumers with more transparent insurance information.
According to the new regulations, insurance companies must clearly inform policyholders of exclusions, coverage limitations, waiting periods, annual or lifetime coverage amounts, and other key terms. Additionally, the impact of the pet’s age, claim history, or relocation on the premium must also be clearly stated.
The new regulations also grant policyholders a “cooling-off period”, allowing them to cancel the policy and receive a refund within a specified period. The calculation method for the refund is also clearly stipulated to safeguard the rights and interests of consumers.
For previous medical conditions, the insurance company can refuse to cover them if fully informed. The new regulations allow for a 30-day waiting period for non-accident-related diseases, but if the pet undergoes a physical examination, this restriction can be waived.
Health plans have also been included in the regulatory scope. Insurance companies must clearly define health plans and prohibit them from being used as a prerequisite for purchasing insurance. Sales and marketing activities must also comply with specific rules to prevent misleading consumers.
Experts suggest that pet owners should carefully compare the terms when choosing insurance, especially regarding coverage for routine examinations, breed-specific diseases, etc. Some insurance plans may not be cost-effective due to additional charges, and consumers need to weigh the pros and cons based on their actual needs.
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