The intended impact of AB 553 is significant; it would remove any financial barriers for pet owners seeking sterilization for their pets, ensuring that they do not have to pay additional fees or purchase separate coverage for such essential surgeries. Additionally, the bill mandates that insurance providers deliver a notice of cancellation for any pet insurance policy at least 20 days in advance of cancellation, or 10 days in cases of nonpayment or fraud. This is aimed at protecting consumers from sudden cancellations and ensuring they have adequate time to manage their insurance.
Assembly Bill 553, introduced by Assembly Member Kamlager, aims to amend the Insurance Code regarding pet insurance in California. The bill seeks to enhance coverage requirements for pet insurance policies by mandating that all policies issued, amended, or renewed after January 1, 2022 must provide full coverage for sterilization surgeries chosen by policyholders, along with all associated veterinary expenses. The legislation also expands the definition of veterinary expenses to include costs incurred from advice, diagnosis, and treatments provided by individuals working under a licensed veterinarian's guidance.
Notably, there may be contention surrounding the potential financial implications for insurance companies. Providers may argue that offering full coverage for sterilization and the prohibition of additional fees for such services could lead to increased policy costs or changes in coverage options due to the higher risk presented by mandatory coverage. The expansion of what constitutes veterinary expenses might also lead to debates about the overall affordability and sustainability of pet insurance in the state.