PIA Urges Senate to Reject 10-Year Moratorium on State AI Regulation

WASHINGTON- On June 16, PIA sent a letter to Senate leadership urging them to reject language in the “One Big Beautiful Bill” that would place a 10-year moratorium on any state-level legislative or regulatory action relating to AI.

“The business of insurance has been successfully regulated at the state level for over a century, and the McCarran-Ferguson Act of 1945 codified the longstanding exemption of the insurance industry from most federal regulation,” said PIA CEO Mike Skiados. “The local expertise of state insurance regulators has proven beneficial for consumers, insurers, and the industry at large, thanks to their ability to quickly respond to emerging insurance risks associated with changing technologies, including artificial intelligence.”

State insurance regulators are already at the forefront of AI regulation. The National Association of Insurance Commissioners (NAIC) adopted a Model Bulletin in 2023 that requires insurers to implement AI governance programs in accordance with all existing state and federal laws. It also offers a template by which insurance commissioners can communicate their expectations to their domiciliary carriers. As of May 2025, nearly 30 states had already adopted the NAIC’s model bulletin on the use of artificial intelligence systems by insurers.

PIA strongly urges the Senate to eliminate the reconciliation language enforcing a 10-year moratorium on state AI legislation and regulation, or explicitly exempt the insurance industry’s state regulation of AI because the industry is already appropriately regulated by the states

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance but specialize in coverage of automobiles, homes and businesses. PIA’s web address www.pianational.org