New Jersey legislation · 2026-2027 Regular Session
New Jersey A5494: Insurance claims, certain-prohibit certain use of artificial intelligence
Status: In committee, September 14, 2026
Prohibits certain use of artificial intelligence in denying homeowner, automobile, and flood insurance claims.
What the bill says
An Act concerning the use of artificial intelligence in deciding certain insurance claims and supplementing Title 17 of the Revised Statutes.
From the introduced text, September 14, 2026:
An Act concerning the use of artificial intelligence in deciding certain insurance claims and supplementing Title 17 of the Revised Statutes. Be It Enacted by the Senate and General Assembly of the State of New Jersey: 1. As used in this act: Artificial intelligence means a technology system (2) is designed to simulate human communication through one or more of the (b) audio; or (c) visual communication; and (3) generates non-scripted outputs with limited or no human oversight. Insurer means a person engaged in the business of homeowners, flood, or automobile insurance in this State. 2. a. An insurer shall not use artificial intelligence to make the final decision to deny a claim filed under an automobile, homeowners, or flood insurance policy. b. An insurer who violates this act shall be subject to a penalty of up to $5,000 for each violation. The penalty shall be collected in a summary proceeding in accordance with the "Penalty Enforcement Law of 1999," P.L.1999, C.274 (C.2A:58-10 et seq.). 3. This act shall take effect immediately. STATEMENT This bill prohibits insurance companies from using artificial intelligence systems to make the final decision to deny claims made by policyholders under homeowner, flood, and automobile insurance policies. Artificial intelligence has been increasingly used in the insurance industry, including in product development, marketing, underwriting and pricing, claim …
Sponsors
- Chris Tully (D, 38) · primary sponsor
Latest actions
- : INT 1RA REF AST
Subjects: SCIENCE AND TECHNOLOGY, COMMERCE
Common questions
- What is A5494?
- A5494 is a bill in the New Jersey Legislature (2026-2027 Regular Session): Insurance claims, certain-prohibit certain use of artificial intelligence.
- What does A5494 do?
- In its own words: An Act concerning the use of artificial intelligence in deciding certain insurance claims and supplementing Title 17 of the Revised Statutes.
- What is the status of A5494?
- In committee as of September 14, 2026. Latest action: INT 1RA REF AST (September 14, 2026).
- Who sponsored A5494?
- Chris Tully (D, 38).
- Where is the official record for A5494?
- On the New Jersey Legislature website: https://www.njleg.state.nj.us/bill-search/2026/A5494
Source: official New Jersey record. Tracked by Delilah, AI for legislation across all 50 states and Congress.