Prohibits certain use of artificial intelligence in denying homeowner, automobile, and flood insurance claims.
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed General Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill aims to prevent insurance companies in New Jersey from using artificial intelligence (AI) to automatically deny homeowner, automobile, or flood insurance claims. It seeks to ensure that claims are reviewed by a human adjuster and not solely based on AI-driven assessments. The legislation intends to provide greater transparency and accountability in the claims process, protecting consumers from potentially unfair denials. It focuses on preventing the use of AI as the *sole* determinant in claim decisions.
Key provisions
- Prohibits the use of AI in automatically denying insurance claims.
- Requires human review of claims decisions when AI is involved.
- Specifies that AI tools must be used to assist, not replace, human claim adjusters.
- Mandates insurance companies to disclose when AI is used in the claims process.
- Establishes a process for appealing decisions made with AI assistance.
Who is affected
- Homeowners
- Automobile insurance policyholders
- Flood insurance policyholders
- Insurance companies operating in New Jersey
- Consumers seeking insurance claims
Notable changes
- Currently, some insurance companies may utilize AI to assess claims, potentially leading to automated denials.
- This bill introduces a requirement for human oversight in these decisions.
Bill text
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1 on record
Primary sponsor
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