Longtime insurance consumer advocate Birny Birnbaum proposed a model law to the National Association of Insurance Commissioners during an online meeting of the Consumer Liaison Committee. Birnbaum’s proposal would define fair and unfair discrimination in insurance; define and ban use of “proxy discrimination against protected classes”; require regulators to monitor for unfair discrimination involving use of data, algorithms, artificial intelligence, and advisory organizations and statistical agents that collect data for insurance organizations. 

Birnbaum also proposes creating a Bureau for the Consumer Advocate in each state and funding it through a 10-cent to 25-cent fee on every individual insurance policy issued in the state. The bureau, he said, should have access to all non-public information on each insurance company as is available to the state’s regulator.