LA HB880: Creates the Louisiana Artificial Intelligence Insurance Fairness Act (OR +$1,029,533 SG EX See Note)

In one paragraph

Louisiana's HB880, the Louisiana Artificial Intelligence Insurance Fairness Act, would have regulated insurers that use algorithmic decision systems in homeowners, commercial property and casualty, auto, health or life insurance: annual independent disparate-impact audits, prohibited variables, human review of claims decisions, AI disclosures, and a right to explanation. Penalties would run up to $250,000 per violation and consumers could sue. It was considered in House Insurance April 23, 2026 and died.

Plain-English summary, written with AI assistance. The official text controls.

What it means for business

None: the bill died and never became law. Insurers using algorithms in underwriting, pricing or claims would have faced audits, variable bans and human review.

Key provisions

1. 1Annual disparate-impact audit of each system by an independent auditor, with certification to the Commissioner by June 30 each year (R.S. 22:1407)
2. 2Prohibited variables, including credit-based scores, social media behavior and retail purchasing data for personal homeowners, regardless of actuarial justification (22:1408)
3. 3No final claims payment determination by an algorithmic system without human review and approval of each determination by a licensed claims professional (22:1409)
4. 4Disclosure of AI use at application, renewal and adverse action; right to a written explanation within 21 days of request and human review decided within 30 days (22:1410-1412)
5. 5Systems filed with the Commissioner at least 60 days before deployment (22:1416)
6. 6Civil penalties from $5,000 to $250,000 per violation by type (certification and notice failures $10,000-$50,000 per day); consumers could sue for $1,000-$10,000 per violation, punitive damages for knowing, willful or reckless conduct, and fees (22:1418-1420)
7. 7Creates the Louisiana AI Insurance Fairness Fund and a 15-member advisory board
8. 8Phased effective dates tied to enactment (January 1 of the following year, with 6, 12 and 18 month phases for some sections); no sunset

Latest legislative action

Mar 9, 2026. Read by title, under the rules, referred to the Committee on Insurance; died when the Louisiana Legislature's 2026 regular session ended

Sponsors

Amendments (2)

• House Committee Amendment #1404 INS Draft Not adopted
• House Committee Amendment #1550 INS Draft Not adopted