Require insurers using AI in underwriting to annually prove non-discrimination in pricing based on race, ethnicity, sexual orientation, or religion. Require balanced pricing segments. Define automated underwriting as including AI and other technologies.
Analysis summaries, actor details, and coverage mappings were LLM-classified and may contain errors.
This is a binding legislative act with mandatory compliance requirements, enforcement mechanisms through the Department of Banking and Insurance, and clear legal obligations on automobile insurers.
The document has good coverage of approximately 2-3 subdomains, with strong focus on unfair discrimination (1.1), unequal performance across groups (1.3), and some coverage of governance failure (6.5). Coverage is concentrated in discrimination and fairness domains related to AI-based insurance underwriting.
The document exclusively governs the Finance and Insurance sector, specifically automobile insurance companies using automated or predictive underwriting systems. No other sectors are regulated by this legislation.
The document primarily focuses on the Deploy and Operate and Monitor stages, requiring annual demonstration of non-discriminatory outcomes from deployed automated underwriting systems. There is implicit coverage of Verify and Validate through the requirement to demonstrate non-discrimination.
The document explicitly mentions automated and predictive underwriting systems, including artificial intelligence. It does not specifically reference AI models, AI systems, frontier AI, general purpose AI, foundation models, generative AI, or compute thresholds. The focus is on automated underwriting technology broadly defined.
New Jersey State Legislature (Senate and General Assembly of the State of New Jersey)
The document is enacted by the Senate and General Assembly of the State of New Jersey, as stated in the enactment clause.
Department of Banking and Insurance; Commissioner of Banking and Insurance
The Department of Banking and Insurance receives documentation from insurers, and the Commissioner has authority to adopt rules and regulations to effectuate the act.
Department of Banking and Insurance; Commissioner of Banking and Insurance
The Department of Banking and Insurance receives annual documentation and analysis from insurers to monitor compliance with non-discrimination requirements.
Automobile insurers using automated or predictive underwriting systems
The bill explicitly targets automobile insurers that use automated or predictive underwriting systems, requiring them to provide annual documentation proving non-discrimination.
4 subdomains (2 Good, 2 Minimal)