Bill regulating pet insurance in Montana receives positive reception

HELENA, Mont. — In Helena, legislators held a hearing on a bill that would strengthen and regulate pet insurance in Montana.

The House Business and Labor Committee met Thursday morning to discuss House Bill 78, the Adoption of a Pet Insurance Model Act.

It was requested by the state auditor and is similar to what other states have done, as this standardizes the regulatory scheme across state lines, making it easier to write policies.

“For those who are unfamiliar as I was before my dog tore her ACL and cost me $3,000 out of pocket, I would have liked to have known about pet insurance before that happened,” said State Rep. Greg Overstreet (R) Stevensville, the bill’s carrier, speaking from personal experience “Veterinary bills can become quite high, and this is a way to obtain coverage for something. A lot of families probably don’t have $3,000 to rehabilitate a dog that barks after deer and continually re-tears her ACL. Perhaps you’ve experienced this.”

Proponents of the bill say it will make the marketplace more transparent, with insurers having to disclose what is covered and what is excluded, and it helps ensure that if a claim is denied, it is done so legally.

“As pet insurance has expanded and coverage has gotten better, premiums have gotten much bigger. Pet insurance is one of the largest growing segments in the insurance industry right now. And thus, we need to improve regulatory oversight, and that’s what this bill does,” said John Iverson, representing Independent Insurance Agents of Montana.

“Why it’s a good consumer protection bill is it really provides some consistency amongst what they offer. Consistence in definitions, making insurance companies disclose very clearly what’s covered and what’s covered and what’s excluded from coverage, if there are pre-existing condition exclusions,” said Frank Cote, representing the Commissioner of Securities and Insurance. “It allows a consumer who purchases a policy that doesn’t have any pre-existing condition exclusions, and then they renew that policy, the insurance company can’t then put a pre-existing exclusion on at that point.”

Cote also read a letter in support of the bill from a member of the Montana Veterinarian Medical Association.

No action was taken on the bill at the meeting, and there were no opponents.

The costs of having to put down an animal are not included in the insurance, and the pet insurance outlined in the bill does not include livestock.