Insurance regulations by state

Key Themes

• Aerial imagery should be used as one of multiple tools, not the sole basis for decisions like nonrenewal, cancellation, underwriting, and claims handling.

• Recent and clear imagery should be used. Old, low-resolution images will usually not be enough alone to prove that a roof must be replaced.

• If aerial imagery raises concerns or the condition of a property is inconclusive of its insurability, the insurer should obtain recent and clear information—such as through a physical inspection or other means.

• When aerial imagery is used as a basis for nonrenewal, it is best practice for the insurer to inform the homeowner in advance, share copies of the aerial images used, and give the homeowner an opportunity to submit updated information or dispute the accuracy of the imagery.

• Insurers are encouraged to provide risk mitigation recommendations and allow homeowners reasonable time to complete necessary repairs before pursuing actions like nonrenewal.

• “Aerial imagery” refers to photographs, videos, or other visual data captured using satellites, aircraft, drones, or other aerial platforms. 

Key Themes

• Insurers need to notify the policyholder that aerial images will be taken.

• Insurers cannot base an adverse decision on an aerial image taken more than 180 days prior to sending the notice.

• Insurers need to provide that aerial image to the policyholder, along with the opportunity to remedy the conditions.

Key Themes

• Aerial imagery should not be the sole basis for nonrenewal due to cosmetic damage.

• Evidence of material degradation is required for nonrenewal.

• Insurers must file underwriting guidelines with the Department.

• Physical inspection required if damage is not unequivocally shown.

• Emphasis on not taking action for natural discoloration or streaking without further evidence.

Key Themes

• Aerial images cannot be solely relied upon to identify the specific condition of a property for nonrenewal or cancellation unless taken within 24 months of the policy action.

• Images that are utilized solely for the purpose of identification and location of the property and any improvements to the property may be used without a limitation on the age of the imagery.

• “Aerial images” include photos from aircraft or satellites.

Key Themes

• Aerial imagery should be used as one of multiple tools, not the sole basis for decisions like nonrenewal, cancellation, underwriting, and claims handling.

• Recent and clear imagery should be used. Old, low-resolution images will usually not be enough alone to prove that a roof must be replaced.

• If aerial imagery raises concerns or the condition of a property is inconclusive of its insurability, the insurer should obtain recent and clear information—such as through a physical inspection or other means.

• When aerial imagery is used as a basis for nonrenewal, it is best practice for the insurer to inform the homeowner in advance, share copies of the aerial images used, and give the homeowner an opportunity to submit updated information or dispute the accuracy of the imagery.

• Insurers are encouraged to provide risk mitigation recommendations and allow homeowners reasonable time to complete necessary repairs before pursuing actions like nonrenewal.

• “Aerial imagery” refers to photographs, videos, or other visual data captured using satellites, aircraft, drones, or other aerial platforms. 

Key Themes

• Satellite or aerial images that are low-resolution, out-of-focus, blurry, or dated do not provide an accurate and clear representation of the property, and thus cannot justify a cancellation or nonrenewal based on the condition of the property without further investigation condition of the property. 

• Satellite or aerial images of a roof that show streaking or discoloration, are not in themselves sufficient to support cancellation or nonrenewal based on roof degradation.

• Insurers should communicate and share aerial or satellite images with policyholders before cancelling or nonrenewing coverage based on those images.

• Policyholders should be given a fair chance to contest the images’ accuracy or show that repairs have been completed, helping reduce complaints and hearing requests.

Key Themes

• Aerial imagery may be used to evaluate a property’s condition and insurers have the right to refuse coverage if clear evidence of property degradation or damage exists.  

• Insurers are expected to ensure the clarity and accuracy of aerial images. 

• Cosmetic damage that does not fundamentally reflect the structural quality of a property or its propensity for loss, such as roof discoloration or streaking, should not be the sole basis for a non-renewal, cancellation, or declination to write a policy.  

• If aerial imagery alone doesn’t clearly show property damage or degradation justifying refusal to write or renew a policy, insurers are expected to conduct further underwriting, including a physical inspection if needed.

• If a dispute arises over an underwriting decision based on aerial images, insurers must promptly review any evidence submitted by the applicant or insured and revise the decision if warranted.

Key Themes

• Insurers are advised to exercise due diligence to ensure that aerial images are clear and up-to-date.

• Before taking Adverse Action based on aerial imagery, insurers should provide policyholders with the opportunity to challenge the images or correct confirmed damages.

• Cosmetic issues, such as roof discoloration or streaking, should not be sole grounds for policy cancellation or nonrenewal.

• If insurers utilize aerial imagery for underwriting or rating purposes, the written notice should include information about the safeguards in place to ensure that all underwriting decisions adhere to the standards outlined in this bulletin, as well as the insurer’s approved underwriting rules and rating plan.

Key Themes

• Detail how customers can obtain and correct any errors that might be discovered in the data.

• A consumer must be able to contact a third-party vendor in order to correct any errors that might be discovered in the data source.

Key Themes

• Aerial imagery should not be the sole basis for denial or nonrenewal due to cosmetic issues such as roof discoloration.

• Acknowledges that aerial imagery is a valuable tool for assessing property conditions but it is not infallible.

• If aerial imagery does not conclusively demonstrate roof degradation or damage sufficient to justify denial or non-renewal, insurers must conduct a physical inspection for verifications. 

• If the insured disputes the insurer’s determination—even when the insurer believes the aerial imagery to be conclusive—a physical inspection is required.

• Recognizes the value aerial imagery brings - generating cost savings, and to maintain fairness and responsibility with this bulletin.

Key Themes

• Imagery should be recent, clear, and accurate when initiating a nonrenewal action.  Insurers must state the precise reason for nonrenewal.  

• When an aerial image does not conclusively show the condition of a property, it should not be the only basis for decision-making — insurers should confirm with inspections or other information.

• When nonrenewal is based on aerial imagery, insurers should notify property owners, provide copies of images, and allow the owner to dispute or provide updates.

Key Themes

• The Department does not restrict the use of aerial imagery, but it must be used responsibly. 

• Insurers must ensure images are clear, accurate, and current - no more than 15 months old - to evaluate a property risk.

• Low-resolution, out-of-focus, blurry, or not current images cannot alone justify a cancellation, nonrenewal, or claim. Aerial images that only show cosmetic issues such as streaking or discoloration, without functional or structural damage, are not sufficient to support cancellation or nonrenewal.

• Underwriting actions must be supported by clear evidence of significant material damage or deterioration that increases the risk of loss. If aerial imagery is inconclusive, insurers should obtain recent, reliable information through physical inspection or other means.

• When relying on aerial imagery for nonrenewal, insurers should notify property owners, provide copies of the images, issue loss control recommendations, and give owners the opportunity to dispute or update the information.

Key Themes

• Aerial images should not be used alone for nonrenewal or cancellation due to cosmetic damage.

• The Department does not seek to broadly restrict the use of aerial imagery. In the absence of unequivocal and material damage shown, insurers should conduct a physical inspection to validate the specific type of damage.

• In addition to simply characterizing a condition of a property, insurers must prove not only that the risk has increased but that the increase has been substantial.

• Specific reasons must be provided for nonrenewal or cancellation.

• Opportunity to challenge or correct issues must be given before nonrenewal or cancellation.

Key Themes

• Aerial imagery should be used as one of multiple tools, not the sole basis for decisions like nonrenewal, cancellation, underwriting, and claims handling.

• Recent and clear imagery should be used. Old, low-resolution images will usually not be enough alone to prove that a roof must be replaced.

• If aerial imagery raises concerns or the condition of a property is inconclusive of its insurability, the insurer should obtain recent and clear information—such as through a physical inspection or other means.

• When aerial imagery is used as a basis for nonrenewal, it is best practice for the insurer to inform the homeowner in advance, share copies of the aerial images used, and give the homeowner an opportunity to submit updated information or dispute the accuracy of the imagery.

• Insurers are encouraged to provide risk mitigation recommendations and allow homeowners reasonable time to complete necessary repairs before pursuing actions like nonrenewal.

• “Aerial imagery” refers to photographs, videos, or other visual data captured using satellites, aircraft, drones, or other aerial platforms. 

NCOIL is developing a model act regarding insurers’ use of aerial images. It is still in draft and Nearmap will closely monitor any updates.

Key Themes

• Include date-stamped images or a link of the property in non-renewal notices that show the specific conditions, with guidance for compliance.

• Photos must have been taken within the past 12 months.

• Set up a contact and process for the insureds to submit proof of required repairs.

• Offer an appeal process for error corrections or misunderstandings related to the non-renewal.

• Require insurers to offer policy renewal if the insureds provide proof of resolved issues.

• Insurer may still nonrenew the policy in question but only if the reason is unrelated to the defects/conditions identified in the aerial image.

• States may wish to include rules that set forth the minimum and maximum sizes (resolution) of the property image.

Adopted the NAIC bulletin in February 2024.

Adopted the NAIC bulletin in July 2024.

Adopted NAIC’s bulletin in February 2024.

Note: Connecticut domestic Insurers must complete the Artificial Intelligence Certification (“Certification”), which is due on or before September 1, 2024, and annually thereafter.

If an Insurer certifies that it demonstrates compliance with applicable laws related to its use of AI Systems through alternative means, the Insurer must provide a description of the alternative means as part of its the Certification.

Adopted NAIC’s bulletin in February 2025.

Adopted NAIC’s bulletin in May 2024.

Adopted NAIC’s bulletin in August 2024.

Adopted NAIC’s bulletin in October 2024.

Adopted NAIC’s bulletin in April 2024.

Adopted NAIC’s bulletin in April 2024.

Adopted NAIC’s bulletin in December 2024.

Adopted NAIC’s bulletin in August 2024.

Adopted NAIC’s bulletin in June 2024.

Adopted NAIC’s bulletin in April 2024.

Adopted NAIC’s bulletin in February 2024.

Adopted NAIC’s bulletin in February 2025.

Adopted NAIC’s bulletin in December 2024.

Adopted NAIC’s bulletin in November 2024.

Adopted NAIC’s bulletin in April 2024.

Adopted NAIC’s bulletin in March 2024.

Adopted NAIC’s bulletin in March 2024.

Adopted NAIC’s bulletin in July 2024.

Adopted NAIC’s bulletin in April 2024.

Adopted NAIC’s bulletin in August 2024.

Adopted NAIC’s bulletin in March 2025.

[Proposed, not adopted] CCPA Updates, Cybersecurity Audits, Risk Assessments, Automated Decisionmaking Technology (ADMT), and Insurance Companies

• Businesses that use ADMT for making significant decisions concerning consumers must comply with the requirements of Article 11.

• If an insurance company uses ADMT, it must provide Pre-use Notices and allow consumers to opt out of ADMT-based decisions.

• Consumers also have the right to appeal ADMT-based decisions.

Consumer Protections for Artificial Intelligence

• Excludes insurers, as defined in Colo. Rev. Stat. Ann. § 10-1-102 (13), who are subject to both: 

  • Colo. Rev. Stat. Ann. § 10-3-1104.9, which governs insurers’ use of external consumer data and AI, and 

  • Any rules adopted by the Colorado Commissioner of Insurance under Colo. Rev. Stat. Ann. § 10-3-1104.9 

  • Insurers that are not subject to Colo. Rev. Stat. Ann. § 10-3-1104.9, and therefore not part of this exemption, include: 

    Insurers issuing commercial insurance policies (except for insurers that issue business owners’ policies or commercial general liability policies with annual premiums of $10,000 or less)

Summary of this bill - Deployers of high-risk AI Systems need to

• Establish a risk management program for each high-risk AI system.​

• Conduct impact assessments to evaluate potential discrimination risks.​

• Annually review AI deployments to ensure non-discriminatory outcomes.​

• Inform consumers when an AI system significantly influences decisions affecting them.​

• Allow consumers to correct inaccuracies in data processed by the AI system.​

• Provide consumers the opportunity to appeal adverse decisions, including human review when feasible.

• Publicly summarize the types of high-risk AI systems in use and the measures taken to manage discrimination risks.​

Use of Artificial Intelligence Systems and External Consumer Data and Information Sources (ECDIS) in Insurance Underwriting and Pricing

It emphasizes compliance with anti-discrimination laws, actuarial validity, transparency, and governance. Insurers must demonstrate that their use of AIS and ECDIS is fair, not unlawfully discriminatory, and that governance and risk management protocols are in place to mitigate risks.

Key Themes

• Insurers cannot refuse to issue or renew policies solely based on roof age if the roof is less than 15 years old.

• Roofs 15+ years old require an inspection to show at least 5 years of useful life remaining.

• Insurers can underwrite based on age if offering actual or depreciated cash value.

Differences

A distinct provision allowing underwriting based on roof age while ensuring the offer of actual or depreciated cash value.