Bill > SB2953

This bill establishes consumer protections and insurer governance requirements for the use of artificial intelligence (AI) systems in certain insurance practices, aiming to ensure transparency, fairness, and accountability. It mandates that insurers using AI in practices that affect consumers must develop an AI governance program, including policies for procurement, use, monitoring, and retirement of AI systems, along with data governance and model validation protocols. For health insurance, the bill specifically requires that if an AI system is used to support a medical necessity determination that leads to an adverse determination (denial of coverage), a licensed clinician must review and affirm the decision, and insurers must notify consumers and providers about the AI's use and the factors contributing to the denial. In residential property insurance, if an insurer uses aerial images or AI-derived outputs from these images as the sole basis for an adverse underwriting action, such as a nonrenewal, they must provide the consumer with the date-stamped image, a clear explanation of the issue, and instructions on how to rebut the finding or correct the issue within a specified cure period, with a limit on the age of images used and a prohibition on sharing such data with other insurers without consent. The Insurance Commissioner is tasked with adopting rules to implement these provisions, and the bill includes a severability clause and an effective date of July 1, 2026.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2953&year=2026