New Jersey Bill A537 ("Discrimination in Automobile Insurance")

Proposed 2022-01-11 | Official source

Summary

Requires automobile insurers using artificial intelligence or other automated underwriting systems to annually submit documentation to New Jersey’s Department of Banking and Insurance proving their pricing practices are nondiscriminatory and balanced across policyholders. Authorizes the Commissioner to issue rules to enforce compliance.

Key facts

🏛️ This document was proposed and/or enacted by the State of New Jersey but is now defunct. For authoritative text and metadata, visit the official source.

🎯 This document primarily applies to the private sector, rather than the government.

📜 This document's name is New Jersey Bill A537. AGORA also tracks this document under the name New Jersey Bill A537 ("Discrimination in Automobile Insurance") .

Themes AI risks, applications, governance strategies, and other themes addressed in AGORA documents.

Risk factors (1)

Bias This tag applies to documents that address undesirable biases in the outputs of AI systems, including biases according to commonly protected classes such as race or gender.

Governance strategies (2)

Full text

This is an unofficial copy. The document has been archived and reformatted in plaintext for AGORA. Footnotes, tables, and similar material may be omitted. For the official text, visit the original source.

AN ACT concerning discrimination in automobile insurance underwriting and supplementing P.L.1997, c.151. (C.17:29A3 46.1 et al.). BE IT ENACTED by the Senate and General Assembly of the State of New Jersey: 1. a. An automobile insurer using an automated or predictive underwriting system shall annually provide documentation and analysis to the Department of Banking and Insurance to demonstrate that there is no discriminatory outcome in the pricing on the basis of race, ethnicity, sexual orientation, or religion, that is determined by the use of the insurer’s automated or predictive underwriting system. Additionally, an insurer shall demonstrate to the commissioner that each pricing segment is balanced and not disproportionate to the overall policyholder population. b. As used in this act, “automated or predictive underwriting system” means a computer-generated process that is used to evaluate the risk of a policyholder and determine an insurance rate. An automated or predictive underwriting system may include, but is not limited to, the use of robotic process automation, artificial intelligence, or other specialized technology in its underwriting process.

1. The Commissioner of Banking and Insurance shall adopt rules and regulations pursuant to the “Administrative procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the purposes of this act.

2. This act shall take effect on the first day of the sixth month next following enactment and shall apply to automobile insurance policies initiated or renewed on or after that date. The Commissioner of Banking and Insurance may take any anticipatory administrative action in advance as shall be necessary for the implementation of this act.