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Wherefore Software In Analyzing Substantial Transformation

Client Alert | 1 min read | 08.10.10

On August 6, 2010, Customs & Border Protection (CBP) published a final determination (75 Fed. Reg. 47609) that Avaya’s Unified Communication Solution was substantially transformed in the United States based upon the totality of the circumstances including installation of the Communication Manager software and the extensive effort at the installation site to integrate the largely foreign hardware components into a working system. CBP rejected Avaya’s assertion that the installation location of software that provides the functionality of a system or hardware could be the sole determinant of substantial transformation under CBP’s prior precedent, as the origin of the software has also been an important factor, and noted here that most of the software development had occurred at Avaya’s Colorado facility, although some ongoing software development now occurs abroad.

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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....