New JerseyInsurers would keep AI from making final home, car, or flood claim denials
New Jersey insurers would have to keep AI from making the final decision to deny claims under home, car, or flood insurance policies.
What it does
Insurers could not use AI to make the final decision to deny home, car, or flood insurance claims. Each violation could bring a fine of up to $5,000.
Argument forKeeping AI from making final denial decisions could reduce the chance that an AI error alone causes a claim to be denied.
Argument againstClaim decisions might take longer if insurers cannot use AI to make the final call on denials.
More detail
New Jersey insurers would be barred from using AI to make the final decision to deny a claim. The rule covers claims under home, car, and flood insurance policies in New Jersey. AI here means a system trained on data that mimics human communication and produces unscripted output with little or no human oversight. An insurer that breaks the rule could face a fine of up to $5,000 for each violation. If enacted, the rule would take effect immediately.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 14Introduced, Referred to Assembly Science, Innovation and Technology CommitteeIntroduced
AI & PrivacyConsumer Protection