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Inexact IDIQ Exercise = Constructive Change

Client Alert | less than 1 min read | 06.04.09

In General Dynamics C4 Sys., Inc. (May 8, 2009), the Armed Services Board of Contract Appeals converted timely delivery order exercises by the Navy into constructive changes because they were sent by e-mail, when the contract specified that electronic delivery was only authorized if specified in the schedule and it was not. Analogizing to option exercises, the board instructed that an IDIQ order must be issued fully in accord with the contract or it is ineffective.

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Client Alert | 4 min read | 03.25.26

NAIC Intensifies AI Regulatory Focus: What Health Insurance Payors Need to Know

The National Association of Insurance Commissioners (NAIC) is intensifying its oversight of how insurers use AI — and the pace of regulatory activity shows no signs of slowing. Over the past several months, the NAIC has published a formal Issue Brief staking out its position on federal AI legislation, launched a multistate AI Evaluation Tool pilot aimed at examining insurers’ AI governance programs, and continued to expand adoption of its AI Model Bulletin across state lines. These developments continue a trend towards enhancing regulation; the NAIC adopted AI Principles in 2020 and a Model Bulletin in 2023 clarifying that existing insurance laws apply to AI systems and establishing expectations for governance, documentation, testing, and third-party oversight. That Model Bulletin has now been adopted in approximately 24 states....