BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           2411 (Jones)
          
          Hearing Date:  8/2/2010         Amended: 8/2/2010
          Consultant: Katie Johnson       Policy Vote: BFI  8-2
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          ____
          BILL SUMMARY:  AB 2411 would add "pet insurance" to the list of  
          miscellaneous insurance. The bill would define it and require  
          disclosure of details of the policy to the purchasing consumer,  
          as specified, commencing July 1, 2011.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
                                                                  
          CDI oversight and post   $0     less than $150less than $150  
          Special*
          information on website
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          ____

          STAFF COMMENTS: 

          Existing insurance law provides for the oversight and regulation  
          of 22 classes of insurance by the California Department of  
          Insurance (CDI), including miscellaneous insurance, as defined.  
          This bill would add "pet insurance" to the list of insurances  
          classified as miscellaneous insurance and would require  
          specified disclosures of policy details to consumers. CDI would  
          be required to post general information related to pet insurers  
          on its departmental website.

          Commencing July 1, 2011, a pet insurer that markets, amends,  
          renews, or delivers a pet insurance policy would be required to  
          disclose to the consumer whether or not the policy, 1) excludes  
          coverage of a preexisting condition, hereditary disorder, or a  
          congenital anomaly, 2) limits coverage through a waiting or  
          affiliation period, a deductible, coinsurance, or an annual or  
          lifetime limit, and 3) reduces coverage or increases premium  
          based on claims experience in a preceding policy period. Pet  
          insurers would be required to post specified information on  
          their websites, including definitions of the terms in item 1  










          above, any benefit schedules used, and the methodology for  
          determining usual and customary charges if they are part of the  
          policy.

          This bill would additionally require CDI to publish the  
          following on its website: 1) a list of insurers that offer,  
          issue, or underwrite pet insurance, 2) the names of the pet  
          insurance products offered by pet insurers, 3) the names of the  
          insurers' general agents, and, 4) a link to the insurer's  
          company profile as maintained by the department.

          In order to oversee the data collection and posting of  
          information related to pet insurance, CDI would need resources  
          of less than $150,000 annually, commencing FY 2011-2012, and  
          ongoing. This bill would not necessitate pet insurers to file  
          changes in a line of insurance with CDI.