AI governance for Delaware insurers
The Delaware Department of Insurance issued Domestic and Foreign Bulletin No. 148 on February 5, 2025, adopting guidance based on the NAIC Model Bulletin on the Use of AI Systems by Insurers. It reminds every carrier that decisions and actions impacting consumers must comply with Delaware insurance law regardless of whether an AI system supported them, including the laws on unfair trade practices, unfair claims settlement, and rate making. The bulletin lets an insurer's AIS Program rely in whole or in part on a recognized framework such as the NIST AI Risk Management Framework v1.0, and it recognizes the NAIC's 2020 Principles on Artificial Intelligence as a source of guidance. It also preserves the Department's authority to request AI documentation during investigations and market conduct actions.
What Delaware expects from your AIS Program
Delaware adopted the NAIC model with some changes. The four pillars below are the shared foundation.
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 Delaware Department of Insurance grounds the bulletin in laws it already enforces:
- Unfair Trade Practices Act18 Del. C. Ch. 23
- Unfair Claims Settlement Practices Act18 Del. C. § 2304(16)
- Corporate Governance Annual Disclosure Act18 Del. C. Ch. 85
- Delaware rate making laws18 Del. C. Chs. 25 and 26
Who it applies to
The bulletin reaches every entity holding a Delaware certificate of authority, including:
- Property and casualty insurers
- Life and annuity insurers
- Health insurers and HMOs
- All other carriers holding a Delaware certificate of authority
State-specific changes: Delaware tracks the NAIC model and expressly allows the AIS Program to adopt or incorporate a third-party framework such as the NIST AI Risk Management Framework v1.0. The core program expectations match the national framework.
Resources for Delaware 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.
Delaware AI governance FAQs
What is Delaware Bulletin No. 148?
Which companies have to comply in Delaware?
Can our AIS Program use the NIST AI Risk Management Framework?
How will Delaware enforce it?
How does a Delaware insurer get ready?
Sources
- Delaware DOI: Domestic and Foreign Bulletin No. 148 (Feb 5, 2025)
- State of Delaware: Navarro issues insurer use of AI bulletin (Feb 6, 2025)
- NAIC Model Bulletin on the Use of AI Systems by Insurers (Dec 4, 2023)
- 18 Del. C. Ch. 23 (Unfair Trade Practices Act, including § 2304 Unfair Claims Settlement Practices)
- 18 Del. C. Ch. 85 (Corporate Governance Annual Disclosure Act)
- 18 Del. C. Chs. 25 and 26 (Delaware rate making laws)
Get audit-ready for Delaware Bulletin No. 148
Swept AI supervises your models and produces the AIS Program evidence Delaware examiners can request.