Bill focused on the final denial decision, not other parts of the claim process.
A New Jersey lawmaker has introduced legislation that would prohibit automobile, homeowners and flood insurers from using artificial intelligence to make the final decision to deny a claim, backed by a penalty of up to $5,000 for each violation.
Assembly Bill 5494 was introduced Sept. 14 by Assemblyman Chris Tully, D-Bergen, and referred to the Assembly Science, Innovation and Technology Committee. Tully is the measure’s only sponsor, and no further legislative action has been recorded.
The prohibition is narrow. It reaches only the final decision to
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