The NAIC Model Bulletin on AI in Insurance Quiz

Answers and explanations appear as you take the quiz.

1. How does the NAIC Model Bulletin on AI gain legal effect in a given state?
   • It takes effect automatically in every state once the NAIC votes
   • A state insurance department must issue it, often with light edits
   • Congress must ratify it through federal insurance legislation
   • Each insurer opts in by filing a signed acceptance with the NAIC
2. What does the bulletin call the written program insurers are expected to maintain for AI use?
   • A Model Risk Charter
   • A Fair Pricing Plan
   • An AIS Program
   • An Algorithmic Impact Statement
3. Under the bulletin, what is an Adverse Consumer Outcome?
   • Any customer complaint filed about an insurer's website
   • A premium increase of more than a set percentage
   • A decision that harms consumers in a way that violates insurance law
   • A claim denial that is later reversed on appeal
4. Which statement about the bulletin's legal basis is accurate?
   • It creates new penalties specific to AI misuse
   • It explains how existing laws such as the Unfair Trade Practices Act apply to AI
   • It replaces state unfair claims settlement laws for AI-driven claims
   • It sets numerical fairness thresholds that models must meet
5. A carrier buys an AI underwriting score from a vendor. According to the bulletin, who remains responsible for consumer outcomes from that score?
   • The vendor alone
   • The state regulator that approved the vendor
   • The insurer using the score
   • The agent who submitted the application
6. What does the bulletin's proportionate approach mean in practice?
   • Small insurers are exempt from the bulletin
   • Controls should scale with how much an AI system affects consumers
   • Every AI tool must receive identical testing
   • Only generative AI tools need governance
7. Which state was described in the guide as taking a separate route through its own statute and regulations rather than relying solely on the bulletin?
   • Colorado
   • Vermont
   • Alaska
   • New Hampshire
8. Why does the bulletin matter to insurance agents even though it is addressed to insurers?
   • It requires agents to obtain a separate AI license
   • It shapes the carrier tools agents use and the questions agents should expect about them
   • It bans agents from using any AI software
   • It makes agents liable for all carrier model errors