PA AG — GEICO AI Underwriting Settlement

Pennsylvania AG Investigation (no public docket number disclosed; AG press release May 26, 2026). Subject: GEICO's use of an AI-enabled underwriting review tool as part of its standard 60-day new-policyholder review process. Root complaint: West Philadelphia new policyholder canceled via AI-triggered review; inadequate notice; policyholder drove uninsured without knowledge. Settlement terms: (1) PA DOI AI guidance compliance; (2) +7-day document-submission window for AI-review-selected policyholders; (3) single residency verification form accepted (not two); (4) driver's license matching policy address accepted as proof of residency; (5) CSR training on new requirements and process clarity. No financial penalty to GEICO; no admission of liability; remediation focused. The settlement parallels the enforcement posture of the NAIC AI Model Bulletin (adopted by 25+ states) and NY DFS Insurance Circular Letter No. 7 (2024) requiring adequate disclosure and governance when AI influences adverse underwriting decisions. Pennsylvania is one of the 12 states participating in the NAIC AI Systems Evaluation Tool pilot (Jan–Sept 2026). AG Sunday framed the matter as a consumer-protection enforcement action under state UDAP/insurance law, not a first-of-its-kind ruling — but it is the first Pennsylvania AG enforcement action specifically targeting an AI underwriting tool. Sources: PA AG official press release + InsuranceJournal (5/26/2026) + ABC27 + Fox43 + Coverager + PennWatch + AM Best (seven independent sources).