Navigating Regulatory Expectations for Artificial Intelligence in Insurance: Insights from Illinois Department of Insurance Bulletin

As insurers increasingly deploy artificial intelligence across their operations, regulators are sharpening their focus on consumer protection and compliance. A March 13, 2024 bulletin from the Illinois Department of Insurance outlines expectations for the responsible use of AI, emphasizing adherence to existing insurance laws, prevention of unfair discrimination, and transparency. The bulletin calls on insurers to implement formal AI governance programs, conduct due diligence on third-party AI vendors, and be prepared for regulatory examination of their AI systems and controls.

Illinois Department of Insurance Cannot Decide Owner-Operator Employment Dispute, Appeals Court Rules

In a landmark ruling, the Illinois First District Court of Appeals has determined that the Illinois Department of Insurance lacks the authority to resolve employment status disputes related to insurance premium calculations. This decision, stemming from the case CAT Express, Inc. v. Muriel, has significant implications for trucking companies using owner-operator agreements. With a premium increase from $1,200 to a staggering $356,000, the court’s findings could lead to more declaratory judgment actions in circuit courts, reshaping the landscape for owner-operators and their employers. Discover the details of this pivotal case and its potential impact on the industry.