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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Insurance

Date & Time
  • event Date

    Tuesday, November 12, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$297.00
CLE
ALL

This CLE webinar will offer guidance to insurance practitioners about the impact of both the National Association of Insurance Commissioners (NAIC) Model Bulletin: Use of Artificial Intelligence Systems by Insurers and various state counterparts. A policyholder attorney and a regulatory and litigation insurer attorney will walk practitioners through the NAIC Model Bulletin and review the risks it is designed to mitigate, the Bulletin's solutions and enforcement mechanisms, and the extent to which the practices and documentation being required will become relevant and discoverable in bad faith or coverage litigation.

Faculty

Robert M. Horkovich
Managing Shareholder
Anderson Kill

Mr. Horkovich has obtained over $8 billion in settlements and judgments from insurance companies for his clients. He is a trial lawyer with substantial experience in trying complex insurance coverage actions on behalf of corporate policyholders and governmental entities. Mr. Horkovic’s victories include one of the top 10 jury verdicts in the United States, the top insurance recovery jury verdict in the United States, seven landmark state Supreme Court decisions, eight jury verdicts and nine bench trial decisions in favor of the policyholder including engaging on several significant projects by the United Nations as its general insurance counsel and the state of California where Anderson Kill served as lead trial in the state's suit against dozens of insurance companies over coverage for cleanup of the Stringfellow Acid Pits (what a federal court described as the most complex environmental clean-up in the world). Mr. Horkovich is a frequent author and lecturer on insurance recovery topics.

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Elizabeth P. Retersdorf
Partner
Day Pitney LLP

Ms. Retersdorf advises clients in complex commercial disputes and regulatory matters, with a focus on insurance and reinsurance issues. She represents plaintiffs and defendants in complex insurance and reinsurance disputes, both litigating and arbitrating actions involving contribution and subrogation claims, disputes regarding retrospective premiums, actions for rescission or reformation, disputes arising from asbestos and other product liability claims, and disputes concerning treaty and facultative reinsurance claims. Ms. Retersdorf has represented clients in multiple state and federal jurisdictions, including Connecticut state courts, and the Districts of Connecticut, D.C., Delaware and New Jersey, as well as in commercial arbitration.

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Description

On Dec. 23, 2023, the NAIC issued its Model Bulletin: Use of Artificial Intelligence Systems by Insurers. Seventeen states have adopted it, and four other states have issued their own regulations and guidance. Significantly, New York's Department of Financial Services issued its Insurance Circular Letter No. 7 on "Use of Artificial Intelligence Systems and External Consumer Data and Information Sources in Insurance Underwriting and Pricing."

The NAIC principles are becoming best practices in the industry and in law. The Bulletin states that insurers are expected to "develop, implement, and maintain a written program for the responsible use of AI Systems" to mitigate specified risks and provides numerous guidelines regarding what a compliant program would look like. The Bulletin also outlines what information and documents insurers would be expected to maintain and make available to regulators. What a compliant AIS program would look like remains uncertain, but insurers will no doubt be developing these with an eye toward its impact on insurance litigation.

Listen as our esteemed panel discusses the NAIC Bulletin, NYDFS Insurance Circular, various approaches by other states, and their impact on underwriting, coverage, and litigation issues.

Outline

  1. Defining AI as used in the Bulletin: automation and big data versus true AI
  2. Guiding principles of NAIC Bulletin
    1. Fairness and ethical use of AI
    2. Accountability
    3. Compliance with state laws and regulations
    4. Transparency
  3. Key provisions
    1. Written program
    2. Governance principles
    3. Risk management and internal controls
    4. Third-party vendor management
  4. State guidance
    1. NYDFS
    2. California
    3. Colorado
    4. Texas
    5. Connecticut
  5. Potential Impact on insurance litigation

Benefits

The panel will address these and other key questions:

  • What are the four risks addressed by the NAIC Bulletin?
  • How does the NYDFS Circular differ from the NAIC Bulletin?
  • What does a compliant AIS program look like?