Florida AI insurance claims handling bills die in committee

Companion bills filed in Florida that would’ve created parameters on artificial intelligence in insurance claims handling and required mandatory human reviews of claim denials have died in committee.

HB 527 and SB 202 aimed to prevent a decision to reduce a claim payment, or deny a claim or a portion of a claim, solely based on an AI system or machine learning system review.

The House bill was unanimously passed in March before dying in the Senate Rules Committee. SB 202 died in the Senate Banking and Insurance Committee.

Florida Politics previously reported that Rep. Hillary Cassel (R-District 101), HB 527 sponsor and vice chair of the House Insurance and Banking Committee, said the bill “‘addresses a growing challenge in our insurance markets’ with a ‘clear and reasonable safeguard’ against algorithm-driven decisions.'”

According to the bills, before adjusting or denying a claim or a portion of a claim, a “qualified human professional” would have been required to:

• • “Analyze the facts of the claim and the terms of the insurance policy independently of any artificial intelligence system or machine learning system;
  • “Review the accuracy of any output generated by such a system; and
  • “Determine that the claim or portion of the claim is not payable under the terms of the insurance policy and should be denied or that the claim payment should be reduced.”

The National Association of Insurance Commissioners (NAIC) has launched an AI Evaluation Tool pilot program to help regulators understand how insurers use AI across 12 states.

The program started in March and will run to September.

“It provides a structured way for states to review AI systems, promote transparency, and identify where additional oversight, training, or improvements may be needed,” an NAIC document states.

States included in the pilot are:

• • California
  • Iowa
  • Rhode Island
  • Colorado
  • Louisiana
  • Vermont
  • Connecticut
  • Florida
  • Maryland
  • Pennsylvania
  • Virginia
  • Wisconsin

NAIC plans to update the tool based on pilot feedback and issue it again for review in September or October. It could consider adopting the updated tool at the fall national meeting.

The National Council of Insurance Legislators (NCOIL) is also considering a resolution that discourages the federal regulation of AI in insurance and encourages allowing each state to decide.

The resolution says that the state-based system of insurance regulation under the McCarran-Ferguson Act “has consistently adapted to advances in technology throughout the years in ways that are efficient and protective of consumers and the insurance marketplace alike.”

During an open meeting of the Society of Collision Repair Specialists (SCRS) Board on April 21, its Education Committee will present on how AI is reshaping the organic search landscape, including practical insights into optimizing for emerging answer engines.

The session will be led by Garrett Zafuto, search engine optimization specialist at Sokal, a North Carolina-based agency specializing in digital advertising for dealerships and collision repair businesses. SCRS says he will share actionable strategies to help collision repairers adapt their digital presence for AI-driven search and evolving consumer discovery trends.

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