Law / United States / 
New Jersey
Insurer use of artificial intelligence in denying homeowners, automobile, and flood claims (A5494)
N.J. A5494 (2026-2027), supplementing Title 17 of the Revised Statutes
An AI sector rules rule binding private bodies.
- Audit expectation
- none
As of .
What it requires
- If you are an insurer in the business of homeowners, flood, or automobile insurance in New Jersey, do not use artificial intelligence to make the final decision to deny a claim filed under an automobile, homeowners, or flood insurance policy.
- A technology system that is trained on data, simulates human communication through text, audio, or visual communication, and generates non-scripted outputs with limited or no human oversight is artificial intelligence for this purpose.
These lines are LexLint's reading of the law's text, as of .
In the frameworks
- NIST AI RMF
- MAP 3.5Processes for human oversight are defined, assessed, and documented in accordance with organizational policies from the GOVERN function.
Our reading of where this law's duties sit in each framework. It never says that running a control meets the law. How we read a framework against the law
What it makes you log
Logging duty
The bill prohibits an insurer from using artificial intelligence to make the final denial decision and states no duty to keep a log or record.
- Kind
- None
- As of
What this law does
This bill would prohibit an insurer from using artificial intelligence to make the final decision to deny a claim filed under an automobile, homeowners, or flood insurance policy. It defines artificial intelligence as a technology system that is trained on data, is designed to simulate human communication through text, audio, or visual communication, and generates non-scripted outputs with limited or no human oversight.
An insurer that violates it would be subject to a penalty of up to $5,000 for each violation, collected in a summary proceeding under the Penalty Enforcement Law of 1999. It was introduced on and referred to the Assembly Science, Innovation and Technology Committee.
When LexLint raises it
When your app profile says your app is an insurer.