---
title: "NYDFS Insurance Circular Letter on AI — KYE Protocol™ coverage"
description: "NYDFS Insurance Circular Letter on AI coverage by KYE Protocol™ — every requirement bijection-mapped to the KYE™ artefact that enforces it."
url: https://kyeprotocol.com/compliance/nydfs-insurance-circular-ai/
lang: en
source: "KYE Protocol"
---

> NYDFS Insurance Circular Letter on AI coverage by KYE Protocol™ — every requirement bijection-mapped to the KYE™ artefact that enforces it.

NYDFS Insurance Circular Letter on AI

# NYDFS Insurance Circular Letter on AI — 100% of in-scope requirements covered.

4 requirements · 3 in scope (3 enforced) · 1 out-of-scope (outside KYE™’s authority layer). The 100% is weighted over the in-scope base.

**Source:** The New York State Department of Financial Services Insurance Circular Letter No. 7 (2024) sets expectations for insurers using AI systems and external consumer data and information sources (ECDIS) in underwriting and pricing, including governance with senior-management accountability, testing for unfair or unlawful discrimination, transparency and disclosure to consumers, and documentation. KYE Protocol™ governs whether an AI-assisted underwriting or claims decision in scope may PROCEED to a consequential adverse action — under a named accountable authority, with a recorded adverse-action reason-code, with proxy-discrimination / fairness-evidence captured, with a signed Evidence Pack™, and a consumer appeal / contestability record. KYE™ does not price risk, select the ECDIS, or design the discrimination-testing methodology. · **License:** NYDFS circular letters are public regulatory guidance; KYE™ registry paraphrases each requirement's intent and cites the circular for mapping purposes only.

## By category

| Category | Reqs | Enforced | Designed | Advisory | Deferred | Coverage |
| --- | --- | --- | --- | --- | --- | --- |
| Senior-management accountability for the AI decision | 1 | 1 | 0 | 0 | 0 | **100%** |
| Unfair-discrimination testing evidence | 1 | 1 | 0 | 0 | 0 | **100%** |
| Consumer transparency & appeal record | 1 | 1 | 0 | 0 | 0 | **100%** |
| ECDIS selection, pricing & methodology design on the merits | 1 | 0 | 0 | 0 | 0 | **0%** |

## Every requirement → the KYE™ artefact that enforces it

| ID | Title | Status | KYE™ enforcement |
| --- | --- | --- | --- |
| `nydfs-insurance-circular-ai.senior-management-accountability` | An AI-assisted underwriting / pricing decision proceeds only under a recorded named-authority decision | enforced | **audit\_events**: `kye.purpose.request.v1`, `kye.purpose.admissibility.v1`, `kye.evidence.decision_map.v1` **engines**: `internal`, `internal` **rule\_packs**: `kye:rule-pack:insurance-underwriting-claims` **dictionaries**: `internal` **constitution\_refs**: `constitution/12-PURPOSE-PERMISSION.md` |
| `nydfs-insurance-circular-ai.unfair-discrimination-testing` | Proxy-discrimination / fairness-evidence is captured before the decision proceeds | enforced | **audit\_events**: `kye.evidence.pack.v1`, `kye.replay.context_seal.v1`, `kye.replay.proof.v1` **engines**: `internal`, `internal` **rule\_packs**: `kye:rule-pack:insurance-underwriting-claims` **constitution\_refs**: `constitution/13-RESILIENCE-LOOP.md`, `constitution/21-DELEGATED-AUDITABILITY.md` |
| `nydfs-insurance-circular-ai.consumer-transparency-appeal` | The decision carries an adverse-action reason and a consumer appeal / contestability record | enforced | **audit\_events**: `kye.evidence.decision_map.v1`, `kye.evidence.pack.v1` **engines**: `internal`, `internal` **rule\_packs**: `kye:rule-pack:insurance-underwriting-claims` **constitution\_refs**: `constitution/13-RESILIENCE-LOOP.md`, `constitution/21-DELEGATED-AUDITABILITY.md` |
| `nydfs-insurance-circular-ai.ecdis-selection-pricing-methodology` | ECDIS selection, risk pricing, and discrimination-testing methodology on the merits | out-of-scope | _(no enforcement cited)_ |

Canonical KYE™ surfaces referenced on this page: [Evidence Pack™](https://kyeprotocol.com/evidence-pack/) · [KYE Protocol™](https://kyeprotocol.com/).