Insurance Practices
The activities insurers engage in that are subject to state insurance law, including underwriting, pricing, claims, marketing, and fraud investigation.
Insurance practices are the business activities that insurers engage in and that state insurance regulators oversee. They include underwriting, pricing, claims handling, marketing, sales, policy administration, and fraud investigation. The NAIC Model Bulletin on AI applies to AI systems used in these insurance practices.
The phrase matters because the NAIC Model Bulletin does not create a new AI law. It explains how existing laws governing insurance practices apply to AI-driven decisions. A model used in underwriting or claims is subject to the same unfair-practices and unfair-discrimination standards as a traditional rule or human decision.
For carriers, the implication is that AI governance should be integrated into existing compliance programs for insurance practices, not treated as a separate technology issue. See our glossary entries on the NAIC Model Bulletin, unfair trade practices, and market conduct exams.