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 is scoped to AI systems that make or support decisions related to “regulated insurance practices,” which is the bulletin’s own phrase and the one that sets its reach.
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.
AI governance belongs inside the existing compliance programs for insurance practices rather than beside them as a technology project. See our glossary entries on the NAIC Model Bulletin, unfair trade practices, and market conduct exams.