Insurance regulations by state

Key Themes

• Aerial imagery should not be the sole basis for nonrenewal due to cosmetic damage.

• Evidence of material degradation is required for nonrenewal.

• Insurers must file underwriting guidelines with the Department.

• Physical inspection required if damage is not unequivocally shown.

• Emphasis on not taking action for natural discoloration or streaking without further evidence.

Key Themes

• Aerial images cannot be solely relied upon to identify the specific condition of a property for nonrenewal or cancellation unless taken within 24 months of the policy action.

• Images that are utilized solely for the purpose of identification and location of the property and any improvements to the property may be used without a limitation on the age of the imagery.

• “Aerial images” include photos from aircraft or satellites.

Key Themes

• Insurers can use aerial imagery to assess roof condition but must provide specific reasons for nonrenewal.

• Notice must be given 45 days prior to policy expiration.

• Aerial imagery is used to spot issues like moss, broken shingles, or overhanging trees.

• Consumers have the right to ask the insurer for an explanation as to why the policy is being non-renewed.

• Consumers have the right to provide documentation to help support their argument for why their policy should be renewed.

Key Themes

• Detail how customers can obtain and correct any errors that might be discovered in the data.

• A consumer must be able to contact a third-party vendor in order to correct any errors that might be discovered in the data source.

Key Themes

• Aerial images should not be used alone for nonrenewal or cancellation due to cosmetic damage.

• The Department does not seek to broadly restrict the use of aerial imagery. In the absence of unequivocal and material damage shown, insurers should conduct a physical inspection to validate the specific type of damage.

• In addition to simply characterizing a condition of a property, insurers must prove not only that the risk has increased but that the increase has been substantial.

• Specific reasons must be provided for nonrenewal or cancellation.

• Opportunity to challenge or correct issues must be given before nonrenewal or cancellation.

Key Themes

• Aerial imagery should not be the sole basis for denial or nonrenewal due to cosmetic issues such as roof discoloration.

• Acknowledges that aerial imagery is a valuable tool for assessing property conditions but it is not infallible.

• If aerial imagery does not conclusively demonstrate roof degradation or damage sufficient to justify denial or non-renewal, insurers must conduct a physical inspection for verifications. 

• If the insured disputes the insurer’s determination—even when the insurer believes the aerial imagery to be conclusive—a physical inspection is required.

• Recognizes the value aerial imagery brings - generating cost savings, and to maintain fairness and responsibility with this bulletin.

NCOIL is developing a model act regarding insurers’ use of aerial images. It is still in draft and Nearmap will closely monitor any updates.

Key Themes

• Include date-stamped images in non-renewal notices that show the specific conditions, with guidance for compliance.

• Photos must have been taken within the past 12 months.

• Set up a contact and process for the insureds to submit proof of required repairs.

• Disclose risk scoring criteria and offer an appeal process for error corrections and score adjustments.

• Allow a minimum of 60 days for the insureds to address issues.

• Require insurers to offer policy renewal if the insureds provide proof of resolved issues.

Adopted the NAIC bulletin in February 2024.

Adopted the NAIC bulletin in July 2024.

Adopted NAIC’s bulletin in Feb 2024.

Note: Connecticut domestic Insurers must complete the Artificial Intelligence Certification (“Certification”), which is due on or before September 1, 2024, and annually thereafter.

If an Insurer certifies that it demonstrates compliance with applicable laws related to its use of AI Systems through alternative means, the Insurer must provide a description of the alternative means as part of its the Certification.

Adopted NAIC’s bulletin in May 2024.

Adopted NAIC’s bulletin in August 2024.

Adopted NAIC’s bulletin in October 2024.

Adopted NAIC’s bulletin in April 2024.

Adopted NAIC’s bulletin in April 2024.

Adopted NAIC’s bulletin in August 2024.

Adopted NAIC’s bulletin in June 2024.

Adopted NAIC’s bulletin in April 2024.

Adopted NAIC’s bulletin in February 2024.

Adopted NAIC’s bulletin in December 2024.

Adopted NAIC’s bulletin in April 2024.

Adopted NAIC’s bulletin in March 2024.

Adopted NAIC’s bulletin in March 2024.

Adopted NAIC’s bulletin in July 2024.

Adopted NAIC’s bulletin in April 2024.

Adopted NAIC’s bulletin in August 2024.

[Proposed, not adopted] CCPA Updates, Cybersecurity Audits, Risk Assessments, Automated Decisionmaking Technology (ADMT), and Insurance Companies

• Businesses that use ADMT for making significant decisions concerning consumers must comply with the requirements of Article 11.

• If an insurance company uses ADMT, it must provide Pre-use Notices and allow consumers to opt out of ADMT-based decisions.

• Consumers also have the right to appeal ADMT-based decisions.

Consumer Protections for Artificial Intelligence

• Excludes insurers, as defined in Colo. Rev. Stat. Ann. § 10-1-102 (13), who are subject to both: 

  • Colo. Rev. Stat. Ann. § 10-3-1104.9, which governs insurers’ use of external consumer data and AI, and 

  • Any rules adopted by the Colorado Commissioner of Insurance under Colo. Rev. Stat. Ann. § 10-3-1104.9 

  • Insurers that are not subject to Colo. Rev. Stat. Ann. § 10-3-1104.9, and therefore not part of this exemption, include: 

    Insurers issuing commercial insurance policies (except for insurers that issue business owners’ policies or commercial general liability policies with annual premiums of $10,000 or less)

Summary of this bill - Deployers of high-risk AI Systems need to

• Establish a risk management program for each high-risk AI system.​

• Conduct impact assessments to evaluate potential discrimination risks.​

• Annually review AI deployments to ensure non-discriminatory outcomes.​

• Inform consumers when an AI system significantly influences decisions affecting them.​

• Allow consumers to correct inaccuracies in data processed by the AI system.​

• Provide consumers the opportunity to appeal adverse decisions, including human review when feasible.

• Publicly summarize the types of high-risk AI systems in use and the measures taken to manage discrimination risks.​

Use of Artificial Intelligence Systems and External Consumer Data and Information Sources (ECDIS) in Insurance Underwriting and Pricing

It emphasizes compliance with anti-discrimination laws, actuarial validity, transparency, and governance. Insurers must demonstrate that their use of AIS and ECDIS is fair, not unlawfully discriminatory, and that governance and risk management protocols are in place to mitigate risks.

Key Themes

• Insurers cannot refuse to issue or renew policies solely based on roof age if the roof is less than 15 years old.

• Roofs 15+ years old require an inspection to show at least 5 years of useful life remaining.

• Insurers can underwrite based on age if offering actual or depreciated cash value.

Differences

A distinct provision allowing underwriting based on roof age while ensuring the offer of actual or depreciated cash value.