The Texas Department of Insurance (“TDI”) has recently released Commissioner’s Bulletin # B-0003-26 regarding the use of artificial intelligence, and Commissioner’s Bulletin # B-0004-26 regarding the calendar year 2025 disallowed expenses data call. The key highlights are as follows:
Commissioner’s Bulletin # B-0003-26:
- This bulletin is applicable to all regulated entities and their agents and representatives.
- Decisions made using AI must comply with the legal and regulatory standards that apply to those decisions, including unfair trade practice laws.
- These standards require, at a minimum, that decisions are not inaccurate, arbitrary, capricious, or unfairly discriminatory, and compliance with such standards is required, regardless of the tools and methods used in decision-making.
- TDI will monitor the use of AI through examinations and product filings. Regulated entities should expect TDI’s monitoring of AI procedures and protections to include inquiries concerning governance frameworks, risk management, data and privacy protections, and internal controls.
Commissioner’s Bulletin # B-0004-26:
- The data call applies to licensed companies in Texas that wrote premium in 2025 for any of the following lines: fire, allied lines, private crop, farm owners multiple peril, homeowners multiple peril, commercial multiple peril, inland marine, medical malpractice, general liability, products liability, private passenger automobile, commercial automobile, fidelity, or surety.
- This data call collects information about “disallowed expenses.”
- The form, affidavit, and instructions can be found here: xlsx
- After completing the Excel form, save the file using the following naming convention:
- For group filings, enter the file name as GRP # DER2025.xlsx. For example, “GRP 1234 DER2025.xlsx”.
- For individual company filings, enter the group number as “0” followed by the five-digit NAIC company number. For example, “GRP 0 12345 DER2025.xlsx”.
Please note that the data call form must be completed and returned to the TDI by July 24, 2026.