This bill proposes several updates to the current statutes regarding the use of predictive models by insurers in Arizona. Under the new provisions, modeling organizations must file specific documentation with the Director of the Arizona Department of Insurance and Financial Institutions (DIFI) before making predictive models available for use by insurers. This includes the organization's constitution, bylaws, and the types of insurance for which the models are prepared. Additionally, the bill mandates that any amendments to these documents be filed promptly and allows the Director to request further data to ensure compliance with insurance statutes. Importantly, authorized insurers are prohibited from using any predictive model unless it has received approval from the Director.

The bill also introduces definitions for key terms such as "modeling organization" and "predictive model," clarifying the roles and responsibilities of these entities. It establishes that predictive models and related data are confidential and exempt from public records laws, thereby protecting sensitive information. Furthermore, the bill specifies that these requirements will apply to predictive models filed after December 31, 2026, while those approved before this date will not need to be refiled. Overall, the legislation aims to enhance regulatory oversight of predictive modeling in the insurance industry while ensuring that modeling organizations adhere to established standards.

Statutes affected:
Introduced Version: 20-381, 20-390.01