Illinois HB 35: AI USE IN HEALTH INSURANCE ACT

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HB0035 EngrossedLRB104 03558 BAB 13582 b

1 AN ACT concerning regulation.

2 Be it enacted by the People of the State of Illinois, 

3represented in the General Assembly:

4 Section 1. Short title. This Act may be cited as the 

5Artificial Intelligence Systems Use in Health Insurance Act.

6 Section 5. Definitions. In this Act:

7 "Adverse consumer outcome" means a decision by a health 

8insurance issuer that is subject to insurance regulatory 

9standards enforced by the Department that adversely impacts 

10the consumer in a manner that violates those standards or any 

11claim denial as determined by the use of an AI system. 

12 "AI system" means a machine-based system that can, with 

13varying levels of autonomy, for a given set of objectives, 

14generate outputs such as predictions, recommendations, content 

15(such as text, images, videos, or sounds), or other outputs 

16influencing decisions made in real or virtual environments. AI 

17system includes artificial intelligence.

18 "AI systems program" means the health insurance issuer's 

19controls and processes for the responsible use of AI systems, 

20including governance, risk management, and internal audit 

21functions, which take into account third-party AI systems and 

22data.

23 "Algorithm" means a clearly specified mathematical process 

HB0035 Engrossed- 2 -LRB104 03558 BAB 13582 b

1for computation and a set of rules that, if followed, will give 

2a prescribed result. 

3 "Artificial intelligence" or "AI" has the meaning given to 

4the term "artificial intelligence" in Section 2-101 of the 

5Illinois Human Rights Act.

6 "Company" has t