New California Bill Means Business As Usual for NAPHIA Members

On October 1, 2014, AB 2056 (Dababneh), was signed into law by Governor Brown, making it the first law of its kind in the United States. According to the California Department of Insurance, this new law was intended to make pet health insurance policies more transparent to consumers.

As an organization, NAPHIA’s focus has always been on creating an environment that promotes full disclosure. Even before this bill was introduced in California NAPHIA most members proactively posted their policy documents on their websites for the public to view. The industry has licensed insurance advisors in members’ customer care centres, and comprehensive websites to help address questions both from policyholders, as well from any pet owners interested in coverage.

Kristen Lynch, NAPHIA’s Executive Director, encourages consumers to take advantage of all the information shared and educate themselves about their policies. “As with other lines of insurance like home, auto or travel coverage, people don’t always read their policy documents until something serious happens.” Lynch adds, “NAPHIA’s members will continue to do our part to make information available. We encourage consumers to take the time to do read their policies and to ask as many questions as necessary to understand pet insurance and how it works.”

The North American Pet Health Insurance Association is comprised of reputable pet health insurance (PHI) organizations from across Canada and the United States. NAPHIA’s membership makes up more than 85% of all pet health insurance coverage in effect in North America.

AB 2056 was sponsored by Insurance Commissioner Dave Jones and will go into effect July 1, 2015.