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NY S10241: Relates to the use of artificial intelligence by insurers and clinical peer reviewers for utilization review; establishes additional notice requireme…

Introduced New York · 2025–2026 session

Last verified Oct 6, 2026 · official bill text

S10241 · where it stands

1 of 5 steps complete
  1. Introduced Complete
  2. Passed first chamber
  3. Passed both chambers
  4. Signed
  5. In effect
What do these statuses mean?
Introduced
Filed in the legislature; may be waiting for a committee hearing.
Passed a chamber
Approved by one or both chambers; awaiting further action.
Signed / enacted
Signed into law; it may or may not be in effect yet.
In effect
The effective date has passed.
Dead / vetoed
Vetoed, failed, or the session ended without action.
View full title

Relates to the use of artificial intelligence by insurers and clinical peer reviewers for utilization review; establishes additional notice requirements for adverse determinations.

In one paragraph

This bill relates to the use of AI by insurers in utilization reviews and establishes notice requirements for adverse determinations.

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

What it means for business

If you are an insurer using AI for utilization reviews, you must notify insureds and health care providers about AI usage by policy renewal or face penalties.

What this means

The bill introduces regulations on the use of artificial intelligence in the insurance sector, particularly for utilization reviews. It aims to enhance transparency and accountability in automated decision-making processes affecting health care services.

Key provisions

  1. The bill addresses the use of AI in utilization reviews.
  2. The specific penalties for non-compliance cannot be confirmed without the full bill text.
  3. The bill text does not confirm exemptions for AI usage without notice.

Compliance checklist

  • Provide written notice about AI usage in utilization reviews Who: Insurers Deadline: At policy renewal and annually Penalty: Fines up to $10,000 for willful violations
  • Submit AI algorithms and training data to the superintendent Who: Insurers Deadline: As specified by the superintendent Penalty: License suspension or revocation

Latest legislative action

May 8, 2026. REFERRED TO INSURANCE

Full analysis

The bill addresses the use of artificial intelligence-based algorithms in utilization review processes by insurers. An 'adverse determination' is defined as a denial, reduction, or termination of, or a failure to provide or make payment (in whole or in part) for a benefit. The specific penalties for non-compliance, including fines, and the potential suspension of the insurer's license as a penalty, cannot be confirmed without the full bill text. The specific timing and frequency of the required notices are not confirmed by the bill text provided, and exemptions for AI usage without notice cannot be verified.

Sponsors

NameRoleDistrict
D Sponsor SD-041

Related and companion bills

Topics and industries

Related topics

AI Healthcare

Affected industries

InsuranceHealthcare

This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error

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