Pet insurance is one of the fastest growing areas in the insurance industry accounting for 3.2 billion in premiums paid in 2022 and growing. However, despite its fast growth, pet insurance remains largely unregulated in the United States.
This lack of regulation has unfortunately led to many abuses within the pet insurance industry. For example, the 2019 NAIC white paper on the pet insurance industry identifies some major problems:
- Frequent Use of Brand Names In Marketing Pet Insurance: Pet insurers' use of brand names imply that the branding company is an insurance company, which creates confusion for consumers, agency employees, TPAs, partners such as veterinary clinics and hospitals as well as regulators. Such practices, including failing to prominently identify the underwriter, are ripe for violations under a state's unfair trade practices act;
- Lack of State Registration: Some pet insurers may fail to register as an insurance company in the state in which they are doing business. This may lead to issues with court jurisdiction issues over them and enforcement and collection of any court judgments which may imposed;
- Use of Unlicensed Producers to Market and Sell Pet Insurance: Pet insurers often use producers which are licensed but such producers use unlicensed, unappointed call center employees. Further, pet insurers often partner with unlicensed veterinary clinics and their staffs to market pet insurance. Their activities often cross the line into licensable activities in violation of state producer licensing laws;
- Use of Unfiled or Unapproved Policy Forms: Some of the branding entities used by pet insurers to sell their products are using unfiled policy language and rates. Additional concerns have been express by regulators about "premium waivers, unfiled discounts, and satisfaction guarantees" and pre-dispute arbitration clauses: and
- Insufficient, Confusing, or Ambiguous Consumer Disclosures: In marketing the pet insurance policies, there is frequently insufficient, confusing, or ambiguous disclosure with respect to pre-existing conditions, congenital conditions, exclusions, and annual and lifetime limits. Fortunately, with years of experience under our belts, the Attorneys at BABINSKY NEIMAND TRIAL FIRM, P.A. know what the insurance companies are allowed to do and what they can't.
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If your insurance company has rejected, denied, or delayed your pet insurance claim, we may be able to help get you paid! Call us for a free consultation or upload a copy of your pertinent documents for a completely free review of your claim. CLICK HERE to go to our claims review page.