The bill, H.B. No. 4635, introduces a new chapter, Chapter 526, to the Texas Insurance Code, specifically addressing the use of artificial intelligence in the denial of insurance claims. It defines "artificial intelligence" and establishes requirements for insurers and health maintenance organizations when they deny a claim based on AI determinations. Specifically, the bill mandates that these entities provide claimants with a written disclosure that includes a notification of the AI basis for the denial, the rationale behind the AI's decision, and instructions for appealing the denial.

This legislation aims to enhance transparency in the insurance claims process by ensuring that claimants are informed about the role of artificial intelligence in decisions that affect their claims. The provisions of this bill will apply only to claims submitted on or after its effective date of September 1, 2025.

Statutes affected:
Introduced: ()