SR-UW-0698 FLAG

Applies to insurers offering individually issued life insurance, private passenger automobile insurance and health benefit plans. "Insurers ... that use ECDIS, as well as algorithms and predictive models that use ECDIS in any insurance practice, must establish a risk-based governance and risk management framework that facilitates and supports policies, procedures, systems, and controls designed to determine whether the use of such ECDIS, algorithms, and predictive models potentially result in unfair discrimination with respect to race and remediate unfair discrimination, if detected through quantitative testing requirements established by the Division." Required components include documented governing principles (1), board or board-committee oversight (2), senior management accountability with "regular reporting to senior management on the performance and potential risks" (3), a documented cross-functional governance group (4), for health plans a provider "ultimately responsible for the decisions" when ECDIS-based tools inform denials or modifications (5), documented policies and procedures (6), complaint and inquiry processes (7), risk assessment (8), a "documented up-to-date inventory, including version control" (9), explanation of material inventory changes (10), a "documented description of quantitative testing conducted pursuant to requirements established by the Division" (11), ongoing performance monitoring "accounting for model drift" (12), documented vendor selection (13) and annual reviews (14).

Insurers using ECDIS must submit a narrative progress report (life: 1 June 2024; private passenger auto and health: 1 December 2025) and, annually, "a report summarizing compliance with the requirements in Section 5 and the title and qualifications of each individual responsible for ensuring compliance" (life: 1 December 2024 and annually; auto and health: 1 July 2026 and annually), signed by an officer attesting to compliance, filed through SERFF; insurers not using ECDIS file an officer attestation to that effect.

Applies to insurers offering individually issued life insurance, private passenger automobile insurance and health benefit plans. "Insurers ... that use ECDIS, as well as algorithms and predictive models that use ECDIS in any insurance practice, must establish a risk-based governance and risk management framework that facilitates and supports policies, procedures, systems, and controls designed to determine whether the use of such ECDIS, algorithms, and predictive models potentially result in unfair discrimination with respect to race and remediate unfair discrimination, if detected through quantitative testing requirements established by the Division." Required components include documented governing principles (1), board or board-committee oversight (2), senior management accountability with "regular reporting to senior management on the performance and potential risks" (3), a documented cross-functional governance group (4), for health plans a provider "ultimately responsible for the decisions" when ECDIS-based tools inform denials or modifications (5), documented policies and procedures (6), complaint and inquiry processes (7), risk assessment (8), a "documented up-to-date inventory, including version control" (9), explanation of material inventory changes (10), a "documented description of quantitative testing conducted pursuant to requirements established by the Division" (11), ongoing performance monitoring "accounting for model drift" (12), documented vendor selection (13) and annual reviews (14).

The insurer remains responsible for the ECDIS, algorithms and predictive models it obtains from vendors or other external resources, must document its vendor selection and oversight, and vendors may produce documents directly to the Division (summary of § 5.B).