Unfair Trade Practices
Deceptive or unethical business acts in insurance, including those enabled by AI systems.
Definition
Methods of competition and acts in the business of insurance that are deemed unfair or deceptive under Vermont law (8 V.S.A. §§ 4721-4724 and 4727), which now explicitly extend to decisions and actions made or supported by AI systems.
Related Terms
Unfair Practices
Practices causing unavoidable consumer harm without offsetting benefits....
Unfair Discrimination
Practices where AI systems lead to biased or inequitable treatment of consumers without legitimate grounds....
Insurer
An entity holding a certificate of authority to conduct insurance business in Vermont....
Deceptive Practices
Practices likely to mislead consumers materially....
Maine Unfair Trade Practices Act (UTPA)
Maine's primary law prohibiting deceptive and unfair business practices, used for enforcing AI disclosure....