summary
Introduced
01/31/2025
01/31/2025
In Committee
04/11/2025
04/11/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Creates the Artificial Intelligence Systems Use in Health Insurance Act. Provides that the Department of Insurance's regulatory oversight of insurers includes oversight of an insurer's use of AI systems to make or support adverse determinations that affect consumers. Provides that any insurer authorized to operate in the State is subject to review by the Department in an investigation or market conduct action regarding the development, implementation, and use of AI systems or predictive models and the outcomes from the use of those AI systems or predictive models. Provides that an insurer authorized to do business in Illinois shall not issue an adverse consumer outcome with regard to the denial, reduction, or termination of insurance plans or benefits that result solely from the use or application of any AI system or predictive model. Provides that any decision-making process for the denial, reduction, or termination of insurance plans or benefits that results from the use of AI systems or predictive models shall be meaningfully reviewed, in accordance with review procedures determined by Department rules, by an individual with authority to override the AI systems and determinations. Authorizes the Department to adopt emergency rules to implement the Act and to adopt rules concerning standards for full and fair disclosure of an insurer's use of AI systems. Makes a conforming change in the Illinois Administrative Procedure Act.
AI Summary
This bill creates the Artificial Intelligence Systems Use in Health Insurance Act, which establishes comprehensive regulations for how insurance companies can use artificial intelligence (AI) in their decision-making processes. The legislation requires the Illinois Department of Insurance to provide regulatory oversight of insurers' AI systems, with a focus on preventing adverse consumer outcomes. Specifically, insurers are prohibited from making insurance plan denials, reductions, or terminations solely based on AI or predictive models, and must ensure that any AI-driven decisions undergo meaningful human review by an individual with the authority to override the AI's determination. The bill provides detailed definitions for key terms like "AI system" and "machine learning" and mandates that insurers develop written programs for responsible AI use. Furthermore, the Department of Insurance is authorized to request documentation about AI systems, conduct investigations, and establish rules for full disclosure of AI utilization. Insurers must ensure that all AI-driven decisions comply with existing insurance laws, federal and state regulations, and avoid unfair discrimination. The legislation aims to protect consumers by introducing transparency and human oversight into AI-powered insurance decision-making processes.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Rule 3-9(a) / Re-referred to Assignments (on 04/11/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1425&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB1425.htm |
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