AI governance for Arkansas insurers
The Arkansas Insurance Department issued Bulletin 13-2024 on July 31, 2024, adopting the NAIC Model Bulletin on the Use of AI Systems by Insurers. It reminds every insurer that holds a certificate of authority that decisions affecting consumers must comply with Arkansas law, including the laws on unfair trade practices and unfair discrimination, regardless of the technology that produced them. The Department expects each insurer to develop and maintain a written AIS Program and recognizes the NAIC's 2020 Principles on Artificial Intelligence as an appropriate source of guidance. The bulletin reaches the full insurance life cycle, from product development through claims and fraud detection.
What Arkansas expects from your AIS Program
Arkansas adopted the NAIC model verbatim, so the program expectations match the national framework.
Governance
A written program with clear ownership. Senior management is accountable to the board, and a cross-functional body oversees AI across its whole life cycle.
Risk Management & Internal Controls
Controls at every stage of the model life cycle, from data sourcing through retirement, sized to the potential harm to consumers.
Third-Party AI Systems & Data
The insurer stays responsible for AI it did not build. Vendor relationships need diligence, contract rights, and the ability to produce evidence.
Documentation & Audit-Readiness
Section 4 spells out what an examiner can ask for. Treating that list as a standing requirement is what keeps a program defensible.
Legal authority
The Arkansas Insurance Department grounds the bulletin in laws it already enforces:
- Trade Practices ActArk. Code Ann. §§ 23-66-201 et seq. and 23-66-301 et seq.
- Unfair Claims Settlement Practices LawArk. Code Ann. § 23-66-206(12)
- Property and Casualty Rating LawArk. Code Ann. §§ 23-67-206 to 223, 23-69-501 to 510, and 23-79-109
- Corporate Governance Annual Disclosure ActArk. Code Ann. §§ 23-63-2001 et seq.
Who it applies to
The bulletin reaches every entity holding a Arkansas certificate of authority, including:
- Property and casualty insurers
- Life and annuity insurers
- Health insurers and HMOs
- All insurers holding an Arkansas certificate of authority
State-specific changes: Arkansas tracks the NAIC model and, like the model text, lets an insurer's AIS Program adopt, incorporate, or rely on a recognized framework such as the NIST AI Risk Management Framework v1.0. The core program expectations match the national framework.
Resources for Arkansas insurers
Start with these plain-language explainers and field guides.
What is the NAIC Model Bulletin on AI?
The NAIC Model Bulletin on the Use of AI Systems by Insurers is the template most states use to set AI governance expectations. Here is what it says and why it matters.
GuideWhat is an AIS Program?
An AI Systems Program (AIS Program) is the written program the NAIC Model Bulletin expects every insurer to maintain. Here are its four pillars and what each one requires.
GuideWhat are the NAIC AI Principles?
The NAIC AI Principles, adopted in 2020, are the foundation beneath every state AI bulletin. The five principles spell FACTS: Fair, Accountable, Compliant, Transparent, and Secure.
GuideAI in Insurance: Key Regulatory Definitions
The NAIC Model Bulletin defines the terms that carry legal weight, from AI System to Adverse Consumer Outcome to Model Drift. Here is what each one means for insurers.
ArticleInsurance Regulators Are Forcing AI Governance. Most Carriers Aren't Ready.
State insurance regulators and bar associations are sounding the alarm on AI in insurance. Legal and regulatory pressure is forcing insurers to operationalize AI governance, not just document it.
ArticleThe NAIC Bulletin Is the Floor Your Reinsurer Will Hold You To
Twenty-four jurisdictions have adopted the NAIC Model Bulletin on AI. Most carrier compliance teams are working to the regulatory text. Their reinsurers will use the same document as an evidentiary baseline at the next placement, and the cedent that meets the floor and stops there is preparing for the wrong audience.
Arkansas AI governance FAQs
What is Arkansas Bulletin 13-2024?
Which companies have to comply in Arkansas?
Can our AIS Program use the NIST AI Risk Management Framework?
How will Arkansas enforce it?
How does an Arkansas insurer get ready?
Sources
- Arkansas Insurance Department: Bulletin 13-2024 (July 31, 2024)
- NAIC Model Bulletin on the Use of AI Systems by Insurers (Dec 4, 2023)
- Ark. Code Ann. § 23-66-206 (Trade Practices Act / unfair claims settlement)
- Ark. Code Ann. § 23-67-208 (Property and Casualty Rating Law)
- Ark. Code Ann. § 23-63-2001 et seq. (Corporate Governance Annual Disclosure Act)
Get audit-ready for Arkansas Bulletin 13-2024
Swept AI supervises your models and produces the AIS Program evidence Arkansas examiners can request.