New Jersey bill would bar AI from final claim-denial decisions

A5494 would let insurers use AI for triage, fraud scoring and approvals, but not the final decision to deny a homeowners, auto or flood claim.

New Jersey Assembly Bill A5494, introduced Sept. 14, would bar insurers from letting an AI system make the final decision to deny a homeowners, auto or flood claim. AI could still be used for triage, fraud scoring and initial assessment, and violations would carry penalties up to $5,000 under the state's Penalty Enforcement Law.

The source's own statement, as linked above. Nothing beyond it has been independently checked by us.

This is a bill, not a law. It has not cleared committee or been signed, and it covers personal lines only, not commercial, life or health.

Carriers writing New Jersey personal lines should confirm a human sits in the denial step before this reaches a floor vote. Agencies fielding personal-lines claims should expect policyholder questions about who, or what, denied them.

• Check whether any AI-assisted claims workflow in NJ personal lines has a human as the final denial decision-maker.
• Track A5494's committee assignment.

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