NAIC

The NAIC's move diverges with how banking regulators have approached the same issue.

NAIC’s move is especially important, consumer advocates said, as new entrants have flooded into the United States, hoping to get a piece of the growing pet-insurance pie.

The committee is preparing for NAIC’s national meeting in April, where regulators from all 50 states will congregate to discuss top-of-mind issues.

That means NAIC’s proposal can be influential for states that have been less proactive than California, whose laws provided a mold.

Hunter and others cautioned that NAIC’s suggestions will not be a panacea for customers expecting pet insurers to cover bills for dogs, cats, ferrets and iguanas who need medical help.