Think tank tells regulators to make carriers declare AI coverage

RAND recommends a standardized AI Coverage Notice so carriers state whether AI-related losses are covered, excluded or silent by line, Insurance Business reports.

Insurance Business reports that RAND recommends state regulators and the NAIC develop a standardized AI Coverage Notice, requiring carriers to declare whether AI-related losses are covered, excluded or silent by line of business. The article says silence on the question carries a cost for brokers.

The source's own statement, as linked above. Nothing beyond it has been independently checked by us.

This is a think tank recommendation, not an adopted rule. No regulator has proposed the notice as a filing requirement yet.

Agencies should stop assuming AI-related losses are covered under a standard form and start asking the carrier for the answer in writing.

• Ask each carrier in writing whether AI-related losses are covered, excluded, or silent on the account's forms
• Document the answer in the file before the next renewal

AI-native agency platform Equal Parts acquires Florida transportation broker