proposed decade-long moratorium on state regulation of artifi
cial intelligence has gained the attention of many, including those within the insurance industry.
The 10-year prohibition of AI regulation is contained within the sweeping tax bill, “One Big Beautiful Bill,” and
would preempt laws and regulations already in place in dozens of states.
The National Association of Professional Insurance Agents (P
IA) on June 16 sent a letter “expressing significant concern” to Senate leadership, who submitted a reconcilia
tion budget bill that has already passed through the House of Representatives.
“PIA strongly urges the Senate to eliminate the reconciliation language enforcing a 10-year moratorium on st
ate AI legislation and regulation, or explicitly exempt the insurance industry’s state regulation of AI because the indust
ry is already appropriately regulated by the state,” said the letter, signed by Mike Skiados, CEO of PIA.
PIA referenced a model already adopted by the National Association of Insurance Commissioners (
NAIC) that requires insurers to implement AI governance programs in accordance with all existing state and fe
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deral laws. Nearly 30 states have adopted the NAIC’s model on the use of AI by insurers.
Earlier in June, NAIC sent a letter to federal lawmakers following the passage of the bill in the House. The commissio
ners said state regulation has been effective in evolving market conditions.
“This system has not only protected consumers and fostered innovation but has also allowed for the flexibility and ex
perimentation that is essential in a rapidly changing world,” said NAIC leadership in the letter. “By allowing states to develop and implement appropriately tailored regulatory frameworks, the system ensures that oversight is both robust and adaptable.”