An Illinois lawmaker has introduced legislation that aims to provide greater oversight of how insurers use artificial intelligence in decision-making processes.
If enacted, the state would have the authority to regulate and investigate insurers' use of AI systems and predictive models, particularly in cases involving claims denials.
Insurers would also be prohibited from issuing adverse decisions solely based on AI or predictive models, and any such decisions must undergo a meaningful review by a qualified individual with the authority to override AI-generated determinations.
The state could also investigate AI practices involving governance, risk management, and compliance protocols.
Illinois has passed several insurance reform laws recently, including bans on prior authorization for admission to inpatient psychiatric services and the sale of short-term individual health plans.