AI governance for Nevada insurers
The Nevada Division of Insurance issued Bulletin 24-001 on February 23, 2024, adopting the NAIC Model Bulletin on the Use of AI Systems by Insurers. It reminds every insurer holding a Nevada certificate of authority that decisions touching consumers must comply with applicable insurance law, including the laws on unfair trade practices and unfair discrimination, regardless of whether an AI system made or supported the decision. The bulletin expects each insurer to maintain a written AIS Program and recognizes the NAIC's 2020 Principles on Artificial Intelligence as an appropriate source of guidance. It reaches the full insurance life cycle, from product development and underwriting through claim management and fraud detection.
What Nevada expects from your AIS Program
Nevada 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 Nevada Division of Insurance grounds the bulletin in laws it already enforces:
- Unfair Trade Practices ActNRS 686A.010 to 686A.310
- Insurance Rating LawNRS 686B.010 to 686B.1799
- Corporate Governance Annual Disclosure ActNRS 692C.3501 to 692C.3509
Who it applies to
The bulletin reaches every entity holding a Nevada certificate of authority, including:
- Property and casualty insurers
- Life and annuity insurers
- Health insurers and HMOs
- All insurers subject to Title 57 of the Nevada Revised Statutes holding a Nevada certificate of authority
State-specific changes: Nevada tracks the NAIC model and applies it to all insurers subject to Title 57 of the Nevada Revised Statutes. The AIS Program expectations match the national framework, so an insurer building to the NAIC model is building to Nevada's expectations.
Resources for Nevada 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.
Nevada AI governance FAQs
What is Nevada Bulletin 24-001?
Which companies have to comply in Nevada?
Can our AIS Program use the NIST AI Risk Management Framework?
How will Nevada enforce it?
How does a Nevada insurer get ready?
Sources
- Nevada Division of Insurance: Bulletin 24-001 (Feb 23, 2024)
- Nevada DOI: Bulletin 24-001 PDF (Use of AI Systems by Insurers)
- NAIC Model Bulletin on the Use of AI Systems by Insurers (Dec 4, 2023)
- NRS Chapter 686A: Trade Practices and Frauds (Unfair Trade Practices Act)
- NRS Chapter 686B: Rates and Essential Insurance (Insurance Rating Law)
- NRS Chapter 692C: Corporate Governance Annual Disclosure (692C.3501 to 692C.3509)
Get audit-ready for Nevada Bulletin 24-001
Swept AI supervises your models and produces the AIS Program evidence Nevada examiners can request.