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A BILL TO BE ENTITLED
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AN ACT
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relating to disclosure of the use of artificial intelligence in the |
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denial of insurance claims. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 5, Insurance Code, is amended |
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by adding Chapter 526 to read as follows: |
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CHAPTER 526. USE OF ARTIFICIAL INTELLIGENCE |
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Sec. 526.001. DEFINITIONS. In this chapter: |
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(1) "Artificial intelligence" means an engineered or |
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machine-based system that varies in autonomy and may, for explicit |
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or implicit objectives, infer from the input the system receives |
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how to generate outputs that can influence physical or virtual |
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environments. |
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(2) "Health maintenance organization" and "insurer" |
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have the meanings assigned by Section 401.001. |
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Sec. 526.002. DISCLOSURE REQUIRED. An insurer or health |
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maintenance organization that denies a claim based on a |
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determination made by artificial intelligence shall provide to the |
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claimant with notice of the denial a written disclosure containing |
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the following information: |
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(1) a notification that the denial was based on a |
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determination made by artificial intelligence; |
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(2) the basis for the determination made by artificial |
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intelligence; and |
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(3) instructions on appealing the denial with the |
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insurer or health maintenance organization. |
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SECTION 2. Section 526.002, Insurance Code, as added by |
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this Act, applies only to a claim submitted on or after the |
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effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2025. |