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AI Summary
The AI Use in Health Insurance Act regulates insurers' use of AI systems for adverse consumer outcomes, requiring meaningful human review of decisions.
Business Impact
If you operate an insurance business in Illinois using AI, you must ensure human review of AI-driven decisions 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
The Artificial Intelligence Systems Use in Health Insurance Act establishes regulatory oversight for insurers using AI systems to make adverse determinations. It mandates that all decisions affecting consumers must undergo meaningful human review. This legislation aims to protect consumers from potential biases in AI-driven decision-making processes.
Key Provisions
- Insurers must not issue adverse outcomes solely based on AI systems.
- Decisions affecting consumers must be reviewed by a human with override authority.
- The Department of Insurance oversees AI system usage by insurers.
- Insurers must develop and maintain an AI systems program.
- Emergency rules may be adopted for timely implementation.
- Full and fair disclosure standards for AI use must be established.
Latest Legislative Action
Rule 3-9(a) / Re-referred to Assignments
Bill Sponsors (showing 5 of 87)
| Name | Role |
|---|---|
| Anne Stava-Murray | Primary |
| Barack Obama | Primary |
| Christine Radogno | Primary |
| Dan McConchie | Primary |
| Daniel Biss | Primary |
Compliance Checklist
Ensure human review of AI-driven decisions impacting consumers
Who: Insurers authorized to operate in Illinois
Penalty: Regulatory scrutiny and potential penalties for non-compliance
Who: Insurers authorized to operate in Illinois
Penalty: Regulatory scrutiny and potential penalties for non-compliance
Develop and implement an AI systems program
Who: Insurers authorized to operate in Illinois
Penalty: Regulatory scrutiny and potential penalties for non-compliance
Who: Insurers authorized to operate in Illinois
Penalty: Regulatory scrutiny and potential penalties for non-compliance
Related & Companion Bills
Full Legal Analysis
The Artificial Intelligence Systems Use in Health Insurance Act requires insurers in Illinois to adhere to strict regulations regarding the use of AI systems in decision-making processes that affect consumers. Specifically, insurers are prohibited from issuing adverse consumer outcomes solely based on AI determinations, ensuring that all such decisions are subject to meaningful human review by authorized individuals. The Department of Insurance is empowered to oversee and investigate insurers' use of AI, including the development and implementation of AI systems and predictive models. Insurers must comply with all applicable insurance laws and regulations, including those addressing unfair trade practices. Key definitions, such as 'AI system' and 'adverse consumer outcome,' are provided to clarify the scope of the bill. This legislation aligns with growing trends in other states to regulate AI in various sectors, emphasizing accountability and transparency in automated decision-making.
Official Source
Official Bill Text
View SB1425 on official legislature website →
Related Topics
Affected Industries
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