Jurisdiction: United States

NAIC H Committee Pre-Fall National Meeting

This coming Friday the Big Data & Artificial Intelligence (H) Working Group, the Privacy ‎Protections (H) Working Group, and the Innovation, Cybersecurity, and Technology (H) ‎Committee will all meet as part of the Fall National Meeting of the National Association of ‎Insurance Commissioners (“NAIC”) in Orlando, Florida. Data use, data retention, and artificial ‎intelligence (“AI”) will be the big topics at the Fall National Meeting. Other H Committee ‎affiliated working groups will not be meeting at the Fall National Meeting; however, those ‎working groups met earlier over the fall and are moving their workstreams forward.‎

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Colorado Proposes Guidance Bulletins for Life Algorithms & Predictive ‎Models Regulation

On November 20, 2023, the Division of Insurance of the Colorado Department of Regulatory Agencies (“DORA”), published for a 9 day public comment period two proposed bulletins which would provide clarifying guidance on the implementation of Colorado Insurance Regulation 10-1-1: Governance of Risk Management Framework Requirements for Life Insurer’s Use of External Consumer Data and Information Sources, Algorithms, and Predictive Models, which was adopted in September 2023 pursuant to SB21-169.

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NAIC Approaching the Finish Line on Health Insurance Lead Generators

The Antifraud (D) Task Force of the National Association of Insurance Commissioners ‎‎(“NAIC”) met on October 20, 2023, to discuss comments received on the August 20 draft ‎revisions to the Model Unfair Trade Practices Act (#880) which would expand the regulatory ‎reach of state insurance regulators to health insurance lead generators, which are not registered ‎or licensed by state insurance regulators. The October 20 meeting became a drafting session as ‎member regulators negotiated textual revisions in real time. Draft new language was uploaded ‎to the NAIC website the evening of Thursday, October 26, 2023, for a one-week comment ‎period closing on Friday November 3, 2023. Despite potential procedural hurdles around public ‎comment periods and open-meeting requirements, the expectation remains that final revisions ‎will be adopted at the Fall National Meeting.‎

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NAIC E Committee Expands Guaranty Fund Coverage for IBT and CD ‎Transactions

On October 25, 2023, the Financial Condition (E) Committee (the “E Committee”) of the National Association of Insurance Commissioners (“NAIC”) adopted revisions to the Property and Casualty Insurance Guaranty Association Model Act (#540) which would ensure guaranty fund coverage following insurance business transfer or corporate division transactions. The adopted draft is coverage neutral in that if there was guaranty fund coverage before the transaction the coverage would remain, but if there was not guaranty fund coverage before the transaction coverage would not result from the transaction. The adopted draft includes optional language that would provide coverage for assumed claims transactions.

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Connecticut Expands Notice Requirements for Withdrawing From a Line of ‎Business

Property and casualty insurance companies’ decisions to withdraw from certain lines of ‎business, in jurisdictions such as California and Florida, has garnered a great deal of attention in ‎recent months. The Connecticut Department of Insurance (the “Department”) recently ‎published a bulletin clarifying its expectations for prior notice from property & casualty carriers ‎when planning to exit a line of business or discontinue a subline of business. The new bulletin ‎rescinds and replaces a prior bulletin,‎ extending the bulletin’s reach regarding location-based ‎discrimination and “agency-facing applications and other technology, processes (e.g., referrals ‎to underwriters) or communications to producers.”‎

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NAIC’s Work on Privacy Model Grinds On

The NAIC’s Privacy Protections (H) Working Group met over the weekend as part of the NAIC’s Summer National Meeting. The working group announced that later in the year it will seek an extension on its efforts to create a unified privacy model act (#674) which will likely push back final adoption into sometime next year. Multiple states have publicly announced that they will not support the current proposed Version 1.2, and at least one state referred to it as fundamentally flawed. The opposed states do not want to move forward with the current version. The Chair announced that the working group will continue to receive public comments while it digests comments previously received and continues the direct one-on-one outreach to companies and trades.

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NAIC Working to Extend Authority Over Health Insurance Lead Generators

Late last month, the NAIC Improper Marketing of Health Insurance (D) Working Group met in ‎a public session to discuss revisions to the Unfair Trade Practices Act (Model# 880) to include ‎health insurance lead generators. The main thrust of the proposed revisions is to extend the ‎prohibited practices of Section 4 of the Unfair Trade Practices Act to health insurance lead ‎generators and to impose upon lead generators record keeping requirements subject to ‎examination by state insurance regulators. The health insurance industry, as represented by ‎AHIP, publicly supports the proposed revisions to the Unfair Trade Practices Act as do multiple ‎consumer representatives.‎

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