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HB 3595

Relating to the Lunar New Year.

2025 Regular Session Introduced by Farrah Chaichi and 9 co-sponsors

Illinois now regulates pet insurance, requires clear disclosures, limits waiting periods, and separates wellness programs from insurance to protect consumers.

In committee upon adjournment.
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Bill Summary · HB 3595

Summary — HB 3595 (Pet Insurance) — Illinois, 104th General Assembly

Status: Enacted — signed by Governor 06/20/2025; effective 09/01/2025
Statutory placement: Adds Article XLVIII (215 ILCS 5/Art. XLVIII; Secs. 1800–1825) to the Illinois Insurance Code

Purpose

HB 3595 creates a dedicated regulatory framework for pet insurance sold in Illinois. The law establishes definitions, consumer disclosure requirements, policy provisions (including rules on waiting periods and preexisting conditions), and rules distinguishing insurance from wellness products.

Key provisions

  • Establishes Article XLVIII of the Illinois Insurance Code (Secs. 1800–1825) specifically governing pet insurance.
  • Definitions: Clarifies terms used in the Article (e.g., pet insurance, preexisting condition, chronic condition, hereditary disorder, congenital anomaly, orthopedic conditions, veterinarian, veterinary expenses, waiting period, wellness program).
  • Consumer disclosures (Sec. 1815):
    • Insurers must disclose if policies exclude coverage for preexisting conditions, hereditary disorders, congenital anomalies, or chronic conditions.
    • Must disclose other exclusions, and conspicuously warn “Other exclusions may apply.”
    • Must disclose any coverage limits (coinsurance, annual or lifetime caps, waiting periods).
    • Must disclose whether deductibles, coverage reductions, or premium changes result from claim history, pet age, or changes in geographic location, and whether the underwriting company differs from the marketed brand.
  • 30‑day “free look” (rescission right): Applicants who have not filed a claim may return a policy, certificate, or rider within 30 days of receipt for a full premium refund.
  • Preexisting conditions and waiting periods:
    • Insurers may exclude preexisting conditions, provided appropriate disclosure.
    • Waiting periods are permitted but may not exceed 30 days for illnesses or orthopedic conditions (unless due to accident).
    • Waiting periods for accidents are prohibited.
    • A preexisting condition does not include a condition covered under a preceding policy if there was no break in coverage at renewal.
  • Wellness programs:
    • Prohibits marketing a wellness program as pet insurance.
    • Wellness programs (subscription or reimbursement-based) must be sold separate from insurance; specific consumer protections apply.
  • Administrative requirements:
    • If insurer uses defined terms, it must use the Article’s definitions in policies and make definitions available on the insurer’s or program administrator’s website via a conspicuous link.
  • Applicability/scope:
    • Applies to pet insurance issued, delivered, or offered to Illinois residents; Article provisions supersede conflicting general law provisions for pet insurance.

Who is affected

  • Pet owners/residents purchasing pet insurance in Illinois (new consumer protections and disclosures).
  • Insurers, managing general agents, insurance producers/brokers and program administrators (new compliance, disclosure, and marketing rules).
  • Veterinarians (definitions and claims context; preexisting condition determinations may rely on veterinary records).

Effective date and legislative action

  • Enacted by the General Assembly, enrolled and signed; effective September 1, 2025.
  • Legislative timeline: introduced Feb 18, 2025; passed both chambers with conference committee actions in May–June 2025; signed by Governor 06/20/2025.

This law aims to increase transparency for consumers buying pet insurance, limit certain waiting period practices, and clarify distinctions between insurance and wellness programs.

Compiled from official sources — confirm details with the bill’s official record.

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