MS| The Mississippi Insurance Department Bulletin 2026-9 reminds all insurers holding a Mississippi certificate of authority that any consumer-impacting decision made or supported by AI systems, predictive models, or machine learning must comply with existing insurance law — specifically the Unfair Trade Practices Act (Miss. Code Ann. §§ 83-5-29 et seq.), the Corporate Governance Annual Disclosure Act (§§ 83-5-701 et seq. and CGAD-R), P/C rating standards prohibiting excessive, inadequate, or unfairly discriminatory rates (§ 83-2-3), and the market conduct framework (§ 83-5-205).
Adopting the NAIC’s 2020 Principles of Artificial Intelligence as its guiding framework, MID expects every insurer to develop, implement, and maintain a written “AIS Program” designed to mitigate Adverse Consumer Outcomes, scaled proportionately to the insurer’s reliance on AI and the degree of potential consumer harm, and covering the full insurance life cycle (product development, marketing, underwriting, rating, claims, and fraud detection) and the full AI model life cycle (design through retirement) — including governance with senior-management and board accountability, cross-functional committees, risk management and internal controls addressing data lineage/quality/bias analysis, model inventories, validation, testing, model drift monitoring, non-public information protection, record retention, consumer notice that AI is in use, and due diligence, contractual audit and regulator-cooperation rights over third-party data and vendor-developed AI.