House Bill No. by Representative Jordan introduces the "Louisiana Artificial Intelligence Insurance Fairness Act," which aims to regulate the use of artificial intelligence (AI) and algorithmic decision systems in the insurance industry to ensure transparency and fairness. The bill mandates insurers to conduct annual disparate impact audits, provide consumer disclosures, and ensure that their decision-making processes are explainable. It prohibits the use of certain discriminatory input variables, such as credit scores and race, unless actuarially justified, and requires insurers to adopt written governance policies for their algorithmic systems. The legislation also establishes civil penalties for violations and grants consumers a private right of action for damages resulting from discriminatory practices.

Additionally, the bill creates the Louisiana Artificial Intelligence Insurance Fairness Fund to support oversight activities and consumer education, and it establishes an AI Insurance Fairness Advisory Board to assist the Commissioner in implementing the Act. The legislation clarifies that it supplements existing anti-discrimination laws and emphasizes the importance of responsible AI use in the insurance sector. It is designed to enhance accountability and protect consumers from unfair treatment, with certain provisions set to take effect on January 1 of the year following its enactment.