The South Carolina Department of Insurance (“Department”) has recently released Bulletins 2026-07 regarding the use of artificial intelligence systems in insurance, applicable to all insurers, producers, licensees, and other interested persons transacting the business of insurance in the state of South Carolina. The key highlights are as follows:
- Decisions or actions impacting consumers that are made or supported by advanced analytical and computational technologies, including Artificial Intelligence (AI) Systems, must comply with all applicable South Carolina insurance laws and regulations, including unfair trade or claims practices and unfair discrimination.
- Insurers using AI Systems are responsible for decisions made and actions taken by Insurers, their producers, adjusters and other authorized representatives based on information derived from or generated by the AI Systems.
- An Insurer is responsible for assuring that rates, rating rules, and rating plans that are developed using AI techniques and Predictive Models that rely on data and Machine Learning do not result in excessive, inadequate, or unfairly discriminatory insurance rates.
- All Insurers doing business in South Carolina are expected to develop, implement, and maintain a written program (an “AIS Program”) for the responsible use of AI Systems that make or support decisions related to regulated insurance practices.
- An Insurer’s conduct in South Carolina, including its use of AI Systems to make or support actions and decisions that impact consumers, is subject to investigation, including market conduct actions.
Please note that this Bulletin became effective upon issuance on September 24, 2026.
For any questions related to the above referenced bulletin in South Carolina, please contact Westmont Associates!