Washington State
House of Representatives
Office of Program Research
BILL
ANALYSIS
Consumer Protection & Business Committee
HB 1078
Brief Description: Concerning pet insurance.
Sponsors: Representatives Walen, Ryu, Leavitt, Callan, Farivar, Berg and Donaghy.
Brief Summary of Bill
  • Prohibits a pet insurer from canceling or refusing to renew a pet insurance policy based on a pet's age or the detection or development of a health condition.
  • Requires pet insurance companies to maintain coverage for current policy holders and not impose new waiting periods or examinations when a different affiliated company is used for underwriting.
Hearing Date: 1/17/25
Staff: Megan Mulvihill (786-7304).
Background:

Pet insurance provides health care coverage for family-owned pets, primarily dogs and cats.? Since pets are legally considered personal property, pet insurance is classified and regulated as property and casualty insurance.? However, it bears many similarities to human health insurance with annual coverage offered at an actuarially determined rate subject to various conditions and exclusions, such as preexisting conditions and chronic conditions.? Typically, pet insurance works on a reimbursement basis, meaning that policyholders will be required to submit veterinarian bills to the insurance company for reimbursement.? Pet insurance policies help cover unexpected veterinarian visits and may cover accidents, illnesses, emergencies, surgeries, and prescriptions, but many do not include routine and preventive care.? Instead, pet wellness plans cover routine care, such as annual examinations, vaccinations, and dental care.

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In 2023 legislation was enacted that set certain standards for pet insurance in the insurance code.? Pet insurance requirements include certain consumer disclosures, universal definitions to be used in policies, requirements around waiting periods and medical examinations, and licensing and training for insurance producers selling pet insurance policies.
Summary of Bill:

A pet insurer may not cancel or refuse to renew a pet insurance policy based on:

  • the covered pet's age; or?
  • the detection or development of a health condition during a covered policy period including, but not limited to a chronic condition, an orthopedic condition, a congenital anomaly, a hereditary disorder, or any other health condition that might otherwise constitute a preexisting condition.

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If an insurer ceases writing pet insurance through one affiliated company and moves that business to another affiliated company, current policyholders must receive an offer of insurance from the replacement affiliated company.? The replacement affiliated company may not:

  • impose a waiting period on the new policy;
  • require a veterinary examination of the covered pet in order to issue or renew the policy; or
  • cancel, refuse to issue, or refuse to renew the new pet insurance policy due to the pet's age or the detection or development of a health condition.?

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Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.