Florida Senate - 2024 CS for SB 1338 By the Committee on Banking and Insurance; and Senator DiCeglie 597-03030-24 20241338c1 1 A bill to be entitled 2 An act relating to pet health; amending s. 624.604, 3 F.S.; revising the definition of the term “property 4 insurance”; amending s. 626.9541, F.S.; providing that 5 certain practices related to pet wellness programs are 6 unfair methods of competition and unfair or deceptive 7 acts or practices; creating s. 627.71545, F.S.; 8 providing a short title; providing the purpose of the 9 act; providing applicability; providing construction; 10 defining terms; requiring pet insurers that use such 11 defined terms in their pet insurance policies to use 12 the statutory definition in their policies; requiring 13 pet insurers to also make such definitions available 14 on their website or their program administrator’s 15 website; requiring pet insurers to make certain 16 disclosures to pet insurance applicants and 17 policyholders; requiring pet insurers to provide a 18 summary of their bases or formulas for determination 19 of claim payments under a pet insurance policy on 20 their website or their program administrator’s 21 website; requiring pet insurers to disclose certain 22 requirements for required medical examinations of a 23 pet by a veterinarian; requiring pet insurers to 24 create a document with a summary of certain 25 disclosures, to post such document on their website or 26 their program administrator’s website, and, upon 27 issuance or delivery of a policy to a policyholder, to 28 provide the disclosure document to the policyholder; 29 requiring additional written disclosures; providing 30 that certain required disclosures are in addition to 31 disclosures required by the insurance code or 32 Financial Services Commission rule; authorizing pet 33 insurance applicants and policyholders to examine and 34 return insurance policies and riders under certain 35 circumstances; requiring that premiums be refunded 36 under certain circumstances; requiring that pet 37 insurance policies and riders have a specified notice 38 printed on or attached to the first page; authorizing 39 pet insurers to issue policies that exclude coverage 40 on the basis of preexisting conditions with 41 appropriate written disclosure to the applicant or 42 policyholder; providing that the pet insurer has a 43 specified burden of proof with regard to such 44 exclusions; authorizing pet insurers to issue policies 45 that impose a waiting period of up to a specified 46 period of time for specified illnesses, diseases, or 47 conditions; prohibiting pet insurers from issuing 48 policies imposing a waiting period for accidents; 49 requiring pet insurers who issue a policy that imposes 50 a waiting period to include a provision allowing for 51 waiver of the waiting period upon completion of a 52 medical examination of the covered pet by a 53 veterinarian; authorizing pet insurers to require an 54 examination to be conducted by a veterinarian after 55 the purchase of the policy; imposing a requirement and 56 making an authorization related to such examination; 57 prohibiting a pet insurer from requiring a medical 58 examination of the covered pet to renew a policy; 59 requiring that certain benefits comply with certain 60 provisions of the Florida Insurance Code; prohibiting 61 insurance applicants’ eligibility from being based on 62 participation or lack of participation in wellness 63 programs; requiring pet insurers to ensure that its 64 agents are trained on specified topics; providing 65 rulemaking authority; providing an effective date. 66 67 Be It Enacted by the Legislature of the State of Florida: 68 69 Section 1. Section 624.604, Florida Statutes, is amended to 70 read: 71 624.604 “Property insurance” defined.—“Property insurance” 72 is insurance on real or personal property of every kind and of 73 every interest therein, whether on land, water, or in the air, 74 against loss or damage from any and all hazard or cause, and 75 against loss consequential upon such loss or damage, other than 76 noncontractual legal liability for any such loss or damage. 77 Property insurance may include pet insurance that provides 78 coverage for accidents and for illnesses or diseases of pets. 79 Property insurance may contain a provision for accidental death 80 or injury as part of a multiple peril homeowner’s policy. Such 81 insurance, which is incidental to the property insurance, is not 82 subject to the provisions of this code applicable to life or 83 health insurance. Property insurance does not include title 84 insurance, as defined in s. 624.608. 85 Section 2. Paragraph (hh) is added to subsection (1) of 86 section 626.9541, Florida Statutes, to read: 87 626.9541 Unfair methods of competition and unfair or 88 deceptive acts or practices defined.— 89 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE 90 ACTS.—The following are defined as unfair methods of competition 91 and unfair or deceptive acts or practices: 92 (hh) Sales practices for pet wellness programs.— 93 1. A pet insurance agent may not market a wellness program 94 as pet insurance. 95 2. If a wellness program is sold by a pet insurance agent: 96 a. The purchase of the wellness program may not be a 97 prerequiste to the purchase of pet insurance; 98 b. The costs of the wellness program must be separate and 99 identifiable from any pet insurance policy sold by the pet 100 insurance agent; 101 c. The terms and conditions of the wellness program must be 102 separate from any pet insurance policy sold by the agent; 103 d. The products or coverages available through the wellness 104 program may not duplicate the products or coverages available 105 through the pet insurance policy; and 106 e. The advertising of the wellness program must not be 107 misleading. 108 Section 3. Section 627.71545, Florida Statutes, is created 109 to read: 110 627.71545 Pet insurance; noninsurance wellness programs.— 111 (1) This section may be cited as the “Pet Insurance Act.” 112 (2) The purpose of this section is to promote the public 113 welfare by creating a comprehensive regulatory framework within 114 which pet insurance may be sold in this state. 115 (3) This section applies to all of the following: 116 (a) Pet insurance policies that are issued to any resident 117 of this state or that are sold, solicited, negotiated, or 118 offered in this state. 119 (b) Pet insurance policies or certificates that are 120 delivered or issued for delivery in the state. 121 (4)(a) This section may not be construed to prohibit or 122 limit the types of exclusions pet insurers may use in their 123 policies or to require pet insurers to include in such policies 124 any of the limitations or exclusions specified in subsection 125 (9). 126 (b) All other applicable provisions of the Florida 127 Insurance Code apply to pet insurance, except that this section 128 supersedes any general provisions of the Florida Insurance Code 129 which otherwise apply to pet insurance. 130 (5)(a) As used in this section, the term: 131 1. “Chronic condition” means a condition that can be 132 treated or managed, but not cured. 133 2. “Congenital anomaly or disorder” means a condition that 134 is present from birth, whether inherited or caused by the 135 environment, and that may cause or contribute to illness or 136 disease. 137 3. “Hereditary disorder” means an abnormality that is 138 genetically transmitted from parent to offspring and may cause 139 illness or disease. 140 4. “Orthopedic” refers to a condition that affects the 141 bones, skeletal muscle, cartilage, tendons, ligaments, or 142 joints. Orthopedic conditions include, but are not limited to, 143 elbow dysplasia, hip dysplasia, intervertebral disc 144 degeneration, patellar luxation, and cranial cruciate ligament 145 rupture but do not include any cancer or any metabolic, 146 hematopoietic, or autoimmune disease. 147 5. “Pet insurance” means an insurance policy that provides 148 coverage for accidents and for illnesses and diseases of pets. 149 Such insurance reimburses a policyholder for expenses associated 150 with medical advice, diagnosis, care, or treatment provided by a 151 veterinarian, including, but not limited to, the cost of drugs 152 prescribed by the veterinarian. 153 6. “Pet insurance policy” or “policy” includes pet 154 insurance certificates. 155 7. “Preexisting condition” means a condition for which any 156 of the following is true before the effective date or during a 157 waiting period applicable to a pet insurance policy: 158 a. A veterinarian provided medical advice. 159 b. The pet received previous treatment. 160 c. Based on information from verifiable sources, the pet 161 had signs or symptoms directly related to the condition for 162 which a claim is being made. 163 164 A condition for which coverage is afforded on a policy is not 165 deemed to be a preexisting condition on any renewal of the 166 policy. 167 8. “Renewal” means the issuance and delivery at the end of 168 an insurance policy period of a policy that supersedes the 169 policy previously issued and delivered by the same pet insurer 170 or affiliated pet insurer and that provides types and limits of 171 coverage substantially similar to those contained in the policy 172 being superseded. 173 9. “Veterinarian” means a health care practitioner who is 174 licensed to engage in the practice of veterinary medicine in 175 Florida under chapter 474. 176 10. “Waiting period” means the period of time specified in 177 a pet insurance policy which is required to run before some or 178 all of the coverage in the policy may begin. This period may not 179 be applied to renewals of existing coverage. 180 11. “Wellness program” means a subscription or 181 reimbursement-based program that is separate from an insurance 182 policy and that provides goods and services to promote the 183 general health, safety, or well-being of the covered pet. If the 184 subscription or program includes language such as “undertakes to 185 indemnify another,” “pays a specified amount upon determinable 186 contingencies,” or “provides coverage for a fortuitous event,” 187 the subscription or program is transacting in the business of 188 insurance and is subject to the Florida Insurance Code. This 189 definition is not intended to classify a contract directly 190 between a service provider and a pet owner which involves only 191 the two parties as being the business of insurance, unless other 192 indications of insurance also exist. 193 (b) If a pet insurer uses any of the terms defined in 194 paragraph (a) in a pet insurance policy, the pet insurer must 195 use the definition of each term as provided in paragraph (a) and 196 must include each such definition in the policy. The pet insurer 197 must also make such definitions available through a clear and 198 conspicuous link on the main page of the website of the pet 199 insurer or the pet insurer’s program administrator. 200 (6)(a) A pet insurer transacting pet insurance must 201 disclose the following to pet insurance applicants and 202 policyholders: 203 1. Whether the policy excludes coverage due to any of the 204 following: 205 a. A chronic condition; 206 b. A congenital anomaly or disorder; 207 c. A hereditary disorder; or 208 d. A preexisting condition. 209 2. If the policy includes any other exclusions not listed 210 in subparagraph 1., the pet insurer must state the following in 211 the disclosure: “Other exclusions may apply. Please refer to the 212 exclusions section of the policy for more information.” 213 3. Any policy provision that limits coverage through a 214 waiting period, a deductible, a coinsurance payment, or an 215 annual or lifetime policy limit. Waiting periods and applicable 216 requirements must be clearly and prominently disclosed to 217 applicants before the policy purchase. 218 4. Whether the pet insurer reduces coverage or increases 219 premium based on the policyholder’s claim history, the age of 220 the covered pet, or a change in the geographic location of the 221 policyholder. 222 5. Whether the underwriting company differs from the brand 223 name used to market and sell the pet insurance. 224 (b) Before issuing a pet insurance policy, a pet insurer 225 shall, through a clear and conspicuous link on the main page of 226 the pet insurer’s or the pet insurer’s program administrator’s 227 website, provide a summary description of the basis or formula 228 for the pet insurer’s determination of claim payments under the 229 policy. 230 1. A pet insurer that uses a benefit schedule to determine 231 claim payments under a pet insurance policy must clearly 232 disclose both of the following: 233 a. The applicable benefit schedule in the policy. 234 b. All benefit schedules used by the pet insurer under its 235 pet insurance policies through a clear and conspicuous link on 236 the main page of the pet insurer’s or pet insurer’s program 237 administrator’s website. 238 2. A pet insurer that determines claim payments under a pet 239 insurance policy based on usual and customary fees, or any other 240 reimbursement limitation based on prevailing veterinary service 241 provider charges, shall do both of the following: 242 a. Include a usual and customary fee limitation provision 243 in the policy which clearly describes the pet insurer’s basis or 244 formula for determining usual and customary fees and the manner 245 in which that basis or formula is applied in calculating claim 246 payments. 247 b. Disclose the pet insurer’s basis for determining usual 248 and customary fees through a clear and conspicuous link on the 249 main page of the pet insurer’s or pet insurer’s program 250 administrator’s website. 251 (c) If any medical examination of the pet by a veterinarian 252 is required to effectuate coverage, the pet insurer must clearly 253 and conspicuously disclose any requirement for the examination 254 before the policy is purchased and must disclose that 255 examination documentation may result in a preexisting condition 256 exclusion. 257 (d) A pet insurer shall create a summary of all policy 258 disclosures required in paragraphs (a), (b), and (c) in a 259 separate document titled “Insurer Disclosure of Important Policy 260 Provisions.” The pet insurer shall post the document through a 261 clear and conspicuous link on the main page of the pet insurer’s 262 or pet insurer’s program administrator’s website. 263 (e) At the time a pet insurance policy is issued or 264 delivered to a policyholder, the pet insurer shall provide the 265 policyholder with a copy of the Insurer Disclosure of Important 266 Policy Provisions document required under paragraph (d), in at 267 least 12-point type. At such time, the pet insurer shall also 268 include a written disclosure with all of the following: 269 1. Contact information for the Division of Consumer 270 Services of the department, including a link and toll-free 271 telephone number, for consumers to submit inquiries and 272 complaints relating to pet insurance products regulated by the 273 department or office. 274 2. The address and customer service telephone number of the 275 pet insurance agent. 276 (f) The disclosures required in this subsection are in 277 addition to any other disclosures required by the insurance code 278 or rules prescribed by the commission. 279 (7) Unless the policyholder has filed a claim under the pet 280 insurance policy, a pet insurance applicant or policyholder may 281 examine and return the policy or rider to the pet insurer or pet 282 insurance agent or broker within 30 days after the applicant or 283 policyholder obtains the receipt and is entitled to the premium 284 refunded if, after examining the policy or rider, he or she is 285 not satisfied for any reason. 286 (8) A pet insurance policy and rider must have a notice 287 prominently printed on or attached to the first page which 288 includes specific instructions to accomplish a return, in type 289 at least as large as any type appearing on the policy or rider 290 contract and in substantially the following language: 291 292 You have 30 days from the day you receive this policy, 293 certificate, or rider to review it and return it to 294 the company if you decide not to keep it. You do not 295 have to tell the company why you are returning it. If 296 you decide not to keep policy, certificate, or rider, 297 simply return it to the company at its administrative 298 office or return it to the insurance agent or broker 299 who you bought it from as long as you have not filed a 300 claim. You must return policy, certificate, or rider 301 within 30 days after the day you first received it in 302 order to receive a refund. The company must refund the 303 full amount of any premium paid within 30 days after 304 it receives the returned policy, certificate, or 305 rider. The premium refund will be sent directly to the 306 person who paid it. The policy, certificate, or rider 307 will be void as if it had never been issued. 308 309 (9)(a) A pet insurer may issue a policy that excludes 310 coverage on the basis of one or more preexisting conditions with 311 appropriate written disclosure to the applicant or policyholder. 312 The pet insurer has the burden of proving that the preexisting 313 condition exclusion applies to the condition for which a claim 314 is being made. 315 (b)1. A pet insurer may issue a policy imposing a waiting 316 period before the effective date of a new policy which does not 317 exceed 30 days for illnesses or diseases or for orthopedic 318 conditions not resulting from an accident. A pet insurer may not 319 issue a policy imposing a waiting period for accidents. 320 2. A pet insurer issuing a policy that imposes a waiting 321 period shall include a provision in its contract which allows 322 the waiting period to be waived upon completion of a medical 323 examination of the pet by a veterinarian. The pet insurer may 324 require the examination to be conducted by a veterinarian after 325 the purchase of the policy. 326 a. A medical examination required under this subparagraph 327 must be paid for by the policyholder, unless the policy 328 specifies that the pet insurer will pay for the examination. 329 b. A pet insurer may specify requirements for the 330 examination and require documentation that the requirements have 331 been satisfied, provided that the specifications do not 332 unreasonably restrict the ability of the applicant or 333 policyholder to waive the waiting period. 334 (c) A pet insurer may not require a medical examination of 335 the covered pet for the policyholder to renew a policy. 336 (d) If a pet insurer includes any prescriptive, wellness, 337 or noninsurance benefit in the policy form, the benefit is made 338 part of the policy contract and must comply with all of the 339 applicable provisions of the Florida Insurance Code. 340 (e) An applicant’s eligibility to purchase a pet insurance 341 policy may not be based on his or her participation, or lack of 342 participation, in a separate wellness program. 343 (10)(a) Pet insurers must ensure that its agents are 344 trained on the topics specified in paragraph (b) and that its 345 agents have been appropriately trained on the coverages and 346 conditions of its pet insurance products. 347 (b) The training required under this subsection must 348 include information on all of the following topics: 349 1. Preexisting conditions and waiting periods. 350 2. The differences between pet insurance and noninsurance 351 wellness programs. 352 3. Chronic conditions, congenital anomalies or disorders, 353 and hereditary disorders and the way pet insurance policies 354 address those conditions or disorders. 355 4. Rating, underwriting, renewal, and other related 356 administrative topics. 357 (11) The commission may adopt rules necessary to administer 358 this section. 359 Section 4. This act shall take effect January 1, 2025.