The NAIC published a Model Bulletin discussing the use of artificial intelligence systems in insurance for use by any state who decides to adopt it. Insurers are reminded that actions or decisions affecting insureds made and supported by AI and AI systems must comply with applicable insurance laws and regulations, including unfair trade practices and unfair discrimination laws. The Bulletin addresses certain expectations of insurers in their development and use of AI technologies. 

As AI continues to develop it has been adopted within the industry in many ways including product development, marketing, sales and distribution, underwriting and pricing, policy servicing, claim management, and fraud detection. While the NAIC supports the development and use of AI systems, it is also aware that it can present certain risks to consumers. 

The Bulletin defines a number of terms including Adverse Consumer Outcome, AI System, Artificial Intelligence, Generative AI, and Machine Learning. The defined terms can be found in the Bulletin.