NJ| The New Jersey Department of Banking and Insurance has issued Bulletin No. 25-03, addressing the use of Artificial Intelligence (AI) Systems in insurance. The bulletin reminds insurers that decisions made using AI must comply with all applicable insurance laws and regulations, including those addressing unfair trade practices and discrimination. It sets forth expectations for insurers to govern the development, acquisition, and use of AI technologies, and outlines the types of information and documentation the Department may request during investigations or examinations regarding AI use.
Key points:
- Insurers are expected to develop and maintain a written program (AIS Program) for the responsible use of AI Systems in regulated insurance practices.
- The AIS Program should address governance, risk management controls, and internal audit functions related to AI use.
- Insurers must ensure that AI Systems do not result in unfair trade practices or unfair claims settlement practices.
- The Department may request detailed information about an insurer’s AI Systems, including governance frameworks, risk management, and internal controls.