The use of AI in the insurance industry has the potential to lead to harms to customers, particularly when used for eligibility determination or decisions about claims. The National Association of Insurance Commissioners adopted a “Model AI Bulletin” in December 2023, and there are several parallels to this model code and associated resources.

Below you can find a mapping of sections from the NAIC model bulletin to sections of this work:

  • Guideline 3.3 of Section 3, on Risk Management and Internal Controls, requires detailed documentation of all predictive models. This is similar to the requirement in Section 2.1 of our model statute. Technical resources on model documentation can be found here.

  • Guideline 4.2 of Section 3 suggests that, when acquiring third party systems, insurers include of contract terms that require cooperation in audits or otherwise entitle the insurer to test the system. This is similar in spirit to Section 3, which requires third-party procurers to ensure that a procured system is suited to their use case. Some details on performance assessment can be found here.

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