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It also calls for a Task Force to "at a minimum, identify laws that require AI models to alter their truthful outputs, or that may compel AI developers or deployers to disclose or report information in a manner that would violate the First Amendment or any other provision of the Constitution."
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On December 16, 2025, the National Association of Insurance
Commissioners (NAIC) issued a
statement (the NAIC Statement), on the December 11
Executive Order Ensuring a National Policy Framework for Artificial
Intelligence (the Executive Order). The Executive Order urges
Congress to act to ensure that "there is a minimally
burdensome national standard – not 50 discordant State
ones." The Executive Order then calls out "the most
onerous and excessive laws emerging from the States that threatento
stymie innovation." It also calls for a Task Force to "at
a minimum, identify laws that require AI models to alter their
truthful outputs, or that may compel AI developers or deployers to
disclose or report information in a manner that would violate the
First Amendment or any other provision of the Constitution."
The Executive Order then goes on to indicate that state funding
under the Broadband Equity Access and Deployment (BEAD) Program and
other sources of funding could be reduced or eliminated based on
continued state regulation of AI that is in contravention with the
AI policy enunciated in the Executive Order.
The Executive Order also calls for the preparation of a
legislative recommendation "establishing a uniform Federal
policy framework for AI that preempts State AI laws that conflict
with the policy set forth in this order." That Section 8 of
the Executive Order goes on to list areas that would not be
preempted, including "(i) child safety protections; (ii) AI
compute and data center infrastructure, other than generally
applicable permitting reforms; (iii) State government procurement
and use of AI; and (iv) other topics as shall be determined,"
but does not specifically reference the regulation of the use of AI
in insurance.
The NAIC Statement responds to the Executive Order in the
following ways:
Historical Overview of State-Based Regulation of
Insurance: The NAIC Statement describes the 150-year
history of state-based regulation, and the basis for local
regulation in the insurance industry, including protection of
consumers in the context of rapidly changing technologies. The NAIC
Statement also discusses state insurance commissioners' recent
steps "to address AI challenges," including states'
adoption of the
NAIC's Model Bulletin on the Use of Artificial Intelligence
Systems by Insurers.
Calling Out Potential Unintended Consequences:
The NAIC states that "the sweeping Executive Order creates
significant unintended consequences" that "could
implicate routine analytical tools insurers use every day and
prevent regulators from addressing risks in areas like rate
setting, underwriting, and claims processing – even when no
true AI is involved."
Highlighting the Potential for Legal
Uncertainty: The NAIC postulates that the Executive Order,
if not clarified in relation to state-based regulation of the
insurance industry, "introduces legal uncertainty, which may
weaken the insurance market by delaying business decisions,
deterring investment, and postponing essential consumer
protections."
Requests Reconsideration: In the Statement,
the NAIC urges "the Administration to reconsider this
Executive Order and, at a minimum, affirm state regulation of AI in
the business of insurance to avoid damaging uncertainty." The
NAIC also calls for "renewed collaboration between federaland
state regulators" on AI innovation.
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