S0202 FL failed

Mandatory Human Reviews of Insurance Claim Denials

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Plain-English summary

**ONE-SENTENCE SUMMARY**: This bill aimed to ensure that insurance claim denials are made by qualified human professionals rather than relying solely on algorithms or AI.

**KEY REQUIREMENTS**:
   - Insurers must have qualified human professionals review and make decisions on claim denials.
   - Algorithms, AI, or machine learning cannot be the sole basis for denying or adjusting claims.

**DEADLINES**: The bill has failed and will not take effect, so there are no compliance deadlines.

**PENALTIES**: Since the bill did not pass, there are no fines or enforcement mechanisms related to this legislation.

**SMB IMPACT**: Small businesses in the insurance sector can continue using their current processes without needing to implement human review requirements for claim denials, avoiding potential operational disruptions and costs associated with compliance.

Source description

Requiring that insurers' decisions to deny a claim or any portion of a claim be made by qualified human professionals; prohibiting the use of algorithms, artificial intelligence, or machine learning systems as the sole basis for determining whether to adjust or deny a claim; authorizing the Office of Insurance Regulation to conduct market conduct examinations and investigations under certain circumstances, etc.

Not legal advice. Summaries are generated by AI from publicly available bill text and may contain errors or omissions. Always consult counsel before making compliance decisions.