Representative Greg Overstreet introduced House Bill 78 as an agency‑request bill from the state auditor to adopt model law language for pet insurance.

"It is the National Association of Insurance Commissioners model act," Overstreet said, explaining the bill standardizes regulatory rules across states so insurers can write coverage more consistently.

Frank Cote of the State Auditor’s Office testified the bill is primarily a consumer protection measure: it standardizes definitions, requires clearer disclosures of covered and excluded conditions and prevents insurers from adding a preexisting‑condition exclusion at renewal when the original policy lacked one. "There are a lot of things that veterinarians do nowadays with pets," Cote said, arguing consumers need clearer information about what a pet policy covers.

John Iverson of the Independent Insurance Agents of Montana also spoke in support and described pet insurance as a rapidly growing market that benefits from improved regulatory oversight.

Committee concern focused on provider networks and scope. Members asked whether veterinarians must accept particular pet insurers and whether the bill covers horses or other animals used commercially. Cote said the draft excludes livestock and that a pet used for a commercial purpose would not be covered; he also said rulemaking authority in the bill could clarify edge cases such as a longtime ranch horse kept as a companion.

A committee member described a personal denial of a large claim and asked whether the bill could address in‑network/out‑of‑network issues. Cote offered to discuss the specific denial offline and said the bill would give the auditor’s office clearer authority to enforce coverage requirements.

No opponents testified at the hearing; members asked clarifying questions and the sponsor closed without further comment. The committee did not take a vote during the hearing.