Bill Text: CA SB1229 | 2023-2024 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Insurance disclosures.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2024-04-24 - April 24 set for first hearing. Failed passage in committee. (Ayes 1. Noes 3. Page 3757.) [SB1229 Detail]

Download: California-2023-SB1229-Introduced.html

---

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 1229

---

Introduced by Senator Nguyen

February 15, 2024

---

An act to add Chapter 4 (commencing with Section 12130) to Part 4 of Division 2 of the Insurance Code, relating to insurance, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL'S DIGEST

SB 1229, as introduced, Nguyen. Insurance disclosures.

Existing law generally regulates the rules governing insurance and insurance contracts. Existing law sets minimum standards of training, experience, skill, and compensation for claims reviewers and adjusters in specified insurance fields.

This bill would require a property and casualty insurer to disclose to an applicant or insured when it has used artificial intelligence to make decisions on, or make decisions that affect, applications and claims review, as specified.

This bill would declare that it is to take effect immediately as an urgency statute.

Digest Key

Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

---

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Chapter 4 (commencing with Section 12130) is added to Part 4 of Division 2 of the Insurance Code, to read:

CHAPTER  4. Use of Artificial Intelligence

12130.

 A property and casualty insurer shall disclose to an applicant or insured when it has used artificial intelligence to make decisions on, or make decisions that affect, either of the following:

(a) Applications for residential property insurance or automobile insurance.

(b) Claims review or other coverage of losses.

SEC. 2.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:

Artificial intelligence (AI) is a rapidly developing technology for which many consumers are unaware of the potential impacts upon decisions affecting their everyday lives and purchasing decisions. To ensure consumers receive information about the use of AI in applications and claims decisions as soon as possible, it is necessary for this act to take effect immediately.