American Modern, the carrier behind Embrace Pet, has filed updates to its Tennessee pet insurance program, with changes scheduled to take effect on July 9, 2026, for both new and renewal business. The filing was submitted on June 4 and is currently under review.
The filing is rate-neutral at the portfolio level and affects a program covering approximately 5,166 policyholders and $6.46 million in written premium. While the overall rate impact is zero, individual policy premiums may vary based on the revised rating structure.
Among the changes, American Modern is introducing a new claims history rating variable, revising breed relativities, updating age-related rating factors for dogs and cats, and modifying annual maximum, deductible, and reimbursement percentage factors. The company is also adding new reimbursement options of 50% and 60% and removing its Healthy Pet discounts, which will now be reflected through the claims history rating approach.
The filing also clarifies that Medication Coverage and Physical Examination Coverage are optional coverages. Policyholders who add either coverage after previously declining it will be subject to a new waiting period and a new determination of pre-existing conditions.
American Modern said the revised rating plan was developed using generalized linear modeling (GLM) based on five years of pet insurance experience and does not employ price optimization techniques.
American Modern also filed a Georgia update to its pet insurance program that would increase the Electronic Funds Transfer (EFT) and recurring credit card payment fee to $2 per transaction, effective August 1, 2026.
