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 _________________________________________________________________ ____ 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. _________________________________________________________________ ____ 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 _________________________________________________________________ ____ 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.