On August 27, 2024, the Nevada Division of Insurance (Division) issued Bulletin 24-002 to remind insurers of their requirement to file any mathematical model used in underwriting or rating for any property and casualty lines of insurance subject to the specified regulation of rates.
The bulletin states that supplementary rate information, which is defined as including any rating rule or rule of underwriting relating to rates, is required to be filed for approval with the Division. The bulletin also clarifies that a change in usage of a previously approved model is considered new supplementary rate information subject to prior approval. A few examples of underwriting rules and predictive models that are subject to filing and approval have been provided. Additionally, insurers using artificial intelligence (AI) and AI systems must meet the requirements of Bulletin 24-002 as well as previously issued Bulletin 24-001.
Please see Bulletin 24-002 for more information.