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AI Summary
SB2953 establishes governance and consumer protections for AI use in insurance, requiring rule adoption by the Insurance Commissioner.
Business Impact
If you use AI in insurance, establish governance and comply with new rules or face regulatory scrutiny.
What do these statuses mean? ▼
Introduced
— Filed in the legislature; not yet heard in committee
In Committee
— Assigned to and being reviewed by a legislative committee
Passed
— Approved by one or both chambers; awaiting further action
Signed / Enacted
— Signed into law by the governor; may or may not be in effect yet
Dead / Vetoed
— Vetoed, failed to pass, or session expired without action
Unknown
— Status data not yet available or awaiting classification
Affected Industries
Topics How we classify →
What This Means
SB2953 mandates governance frameworks and consumer protections for AI in Hawaii insurance practices, including health and residential property insurance, with rule-making by the Insurance Commissioner.
Key Provisions
- § 431:13-D: Insurers must establish an AI governance program.
- § 431:13-H: Licensed clinician review required for adverse medical necessity determinations.
- § 431:13-L: Limits on using aerial images for adverse underwriting actions in property insurance.
- § 431:13-C: Commissioner to adopt rules for implementation.
Latest Legislative Action
Referred to CPN/LBT, WAM.
Bill Sponsors (showing 5 of 25)
| Name | Role |
|---|---|
| Baker | Primary |
| CHANG | Primary |
| DELA CRUZ | Primary |
| FEVELLA | Primary |
| GABBARD | Primary |
Compliance Checklist
Develop and implement an AI system governance program.
Who: All insurers using AI systems in insurance practices.
Deadline: Ongoing as systems are deployed.
Penalty: Considered an unfair trade practice.
Who: All insurers using AI systems in insurance practices.
Deadline: Ongoing as systems are deployed.
Penalty: Considered an unfair trade practice.
Conduct pre-deployment testing and continuous monitoring of AI systems.
Who: Insurers using AI systems.
Deadline: Before deployment and continuously thereafter.
Penalty: Considered an unfair trade practice.
Who: Insurers using AI systems.
Deadline: Before deployment and continuously thereafter.
Penalty: Considered an unfair trade practice.
Provide notice and opportunity to rebut adverse underwriting actions based on aerial images.
Who: Insurers using aerial images for underwriting.
Deadline: At the time of nonrenewal notice.
Penalty: Considered an unfair trade practice.
Who: Insurers using aerial images for underwriting.
Deadline: At the time of nonrenewal notice.
Penalty: Considered an unfair trade practice.
Full Legal Analysis
SB2953 addresses the use of artificial intelligence systems in insurance practices in Hawaii, focusing on consumer protections and governance requirements. The bill mandates insurers to develop and maintain a governance program for AI systems, ensuring transparency, fairness, and compliance with existing standards. It requires licensed clinician review for adverse medical necessity determinations in health insurance when AI is used. For residential property insurance, the bill limits the use of aerial images as the sole basis for adverse underwriting actions, requiring notice and opportunities for rebuttal and cure. The Insurance Commissioner is tasked with adopting rules to implement these provisions, including standards for recordkeeping, testing, and monitoring of AI systems.
Official Source
Official Bill Text
View SB2953 on official legislature website →
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