Pet owners in New York are still on their own when dealing with pet insurance companies. A bill that would have regulated insurers, set industry standards in the state, and required greater transparency from insurers is dead — for now.
Gov. Kathy Hochul vetoed the bill on Nov. 22, after both the state Senate and Assembly had unanimously passed it.
In her veto memo, Hochul said the bill was “duplicative” since pet insurance “is already authorized in the state.” The legislation “would cause confusion as to which substantive provisions of the Insurance Law would apply,” the veto memo stated.
New York insurance law states that “animals are considered personal property.” The state regulates pet insurance as inland marine insurance — a form of property and casualty insurance.
“It is my understanding that they believe that the bill should be an amendment that creates pet insurance within what is considered animal insurance, instead of creating a new regulatory framework around pet insurance, specifically,” Assembly woman Pamela J. Hunter, one of the bill’s sponsors, told Insurify.
The governor’s office didn’t respond to an email and voice message requesting comment.
What the bill would have done
In July, Hunter said that the bill’s intention was to ensure “that there are standards within the [pet insurance] industry that have already been adopted in other states.”
The bill would have established uniform definitions for pet insurance terms and multiple disclosure requirements, including whether a policy excludes pre-existing conditions, hereditary disorders, congenital anomalies, or chronic conditions.
It also would have banned waiting periods for accident-only coverage and limited waiting periods for illnesses and orthopedic conditions. Many pet insurance companies establish waiting periods — a time during which the insurer won’t cover claims.
“I believe there should be differentiation between pet wellness policy products and healthcare products,” Hunter told Insurify via email. “The bill standardizes these types of policies, brings transparency and clarity to what consumers are getting, and allows for better policy writing by bringing New York law in line with what is working well in other states.”
Currently, 11 states have specific laws regulating pet insurance, according to the National Association of Insurance Commissioners (NAIC), which created a model law for state regulators in 2022.
What’s next?
Hochul’s veto memo noted that the state’s current insurance laws already apply to animals. But pet insurance differs from the kind of animal insurance the governor referred to, Hunter explained.
“Animal insurance is part of property and casualty, which can cover things such as the liability on farm animals, for example,” she said. “Pet insurance, on the other hand, is intended to be a form of health insurance specifically for household pets.”
As the bill moved through the Assembly and Senate, no one raised significant concerns, Hunter noted. The bill passed both houses unanimously and had the support of the North American Pet Health Insurance Association.
“I plan to reintroduce the bill in 2025 and will work with the governor’s office and the Department of Financial Services to address concerns and hopefully get the bill enacted,” Hunter said. “Pet insurance is available, but getting this bill enacted will improve quality and consistency.”
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