---
title: "Flag Known-Proxy Variables in Rating Code | Encephalon"
description: "Your maintained list of prohibited and known-proxy variables is checked in the code engineers write, at the point of change, not after deployment."
source: "/use-cases/insurance-prohibited-variables/"
---

[Insurance](https://encephalon.net/use-cases/#insurance)

# Flag prohibited and known-proxy variables in rating and underwriting code

## The problem

Engineers building rating and underwriting logic can introduce a prohibited variable, or a proxy for one, without noticing. State insurance departments scrutinize exactly this, and catching it after deployment is expensive and public.

## How Encephalon addresses it

Encephalon encodes your organization’s maintained list of prohibited and known-proxy variables, along with your required documented-testing steps, into every AI session. When a variable from that list appears in rating or underwriting code, it gets flagged for human review before the change lands. Two honest limits: this checks code against your list, so it does not discover a novel statistical proxy on its own, and it does not read a deployed model’s live decisions. What it does is put your own compliance knowledge in the path of every change, which is where it was never applied before.

## The outcome

Prohibited-variable risk caught at the source, with documented testing evidence that supports the carrier’s response when a department inquiry arrives. The expensive version of this discovery, in a market conduct exam, gets a lot less likely.

[Book a 30-minute discovery call](https://encephalon.net/book/) to see this against your own variable list.

Keep exploring

## More Insurance use cases

[### Turn the AI governance program into rules the coding session honors

The development-facing controls in your NAIC-driven AI governance program become working rules in every session, not shelfware in a policy binder.](https://encephalon.net/use-cases/insurance-governance-program-execution/)

[### Hold actuarial model code and documentation to standard

Actuarial documentation standards encoded once and applied in every session, so the work arrives review-ready instead of bouncing back for rework.](https://encephalon.net/use-cases/insurance-actuarial-documentation/)

[View all use cases](https://encephalon.net/use-cases/)

## See Encephalon's Governance Practice
in Action

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