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AIPS-1 is an open standard for AI agent insurance that provides a common framework to issue, identify, and verify insurance policies covering AI agent activity, via an on-chain Policy Certificate. It defines five core properties (Issuer, Coverage, Trigger, Settlement, Verifiability) and three tiers, ensuring the policy can be verified in real time at the moment of reliance and addressing the Illegible Insurance Problem. The standard is a representation standard (not regulatory) designed to enable machine-readable policy terms, deterministic triggers, defined settlement paths, and pricing of agent-risk pools by reinsurance and capital markets.
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