Committee Statement — Senate No. 3327 with Committee Amendments (Senate Commerce Committee, February 16, 2023)

Summary

Senate Commerce Committee statement to Senate, No. 3327, with committee amendments, State of New Jersey, dated February 16, 2023. The committee reports favorably and with amendments Senate Bill No. 3327, which as amended establishes the “Pet Insurance Act” as a framework within which pet insurance may be sold in the State. The statement says the bill limits how insurers can deny claims tied to preexisting conditions and requires the insurer to prove that a preexisting condition limitation applies. It also requires insurers and producers to differentiate pet wellness programs from insurance policies and sets training requirements for producers.

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     SENATE COMMERCE COMMITTEE

                     STATEMENT TO

                   SENATE, No. 3327
                    with committee amendments



 STATE OF NEW JERSEY
                    DATED: FEBRUARY 16, 2023

   The Senate Commerce Committee reports favorably and with
committee amendments Senate Bill No. 3327.
   As amended, this bill establishes the “Pet Insurance Act,” which
creates a comprehensive legal framework within which pet
insurance may be sold in the State.
   Under the bill, several consumer protections related to policy
renewals, waiting periods, policy limits, conditions, and benefit
schedules are included, including disclosures a pet insurer
transacting pet insurance must disclose to consumers, such as:
   (1) if the policy excludes coverage due to:
   (a) a preexisting condition;
   (b) a hereditary disorder;
   (c) a congenital anomaly or disorder; or
   (d) a chronic condition; and
   (2) if the policy includes any other exclusions, using the
following statement: “Other exclusions may apply. Please refer to
the exclusions section of the policy for more information.”
   The bill provides limits on how insurers can deny pet insurance
claims related to preexisting conditions of covered pets, and
requires the insurer to prove a preexisting condition limitation
applies.
   The bill additionally provides requirements to insurers and
insurance producers to clearly differentiate pet wellness programs
from insurance policies to eliminate consumer confusion between
what services are covered by insurance.
   Finally, the bill provides training requirements for insurance
producers to ensure that producers are appropriately prepared to
present information to consumers.

COMMITTEE AMENDMENTS:
    The committee amended the bill to:
    (1) define the term “insured” to mean the owner of a pet listed
within the pet insurance policy;
    (2) clarify that, unless the insured has filed a claim, the insured has
30 days, rather than 15 days, to examine and return the pet insurance
policy from the date the insured received the policy;
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    (3) remove the prohibition on an insurance producer marketing a
wellness program during the sale, solicitation, or negotiation of a pet
insurance policy; and
    (4) require an insurance producer to hold an active life, health, or
property and casualty license and be in good standing at the time the
producer submits an application to receive a pet insurance license.


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