(b) A property and casualty insurer shall provide this disclosure at the time of application for coverage or once annually in a property and casualty insurer’s annual disclosures.
(c) For purposes of this section, the following definitions apply:
(1) (A) “Artificial intelligence” (AI) refers to a branch of computer science that uses data processing systems that perform functions normally associated with human intelligence, such as reasoning, learning, and self-improvement, or the capability of a device to perform functions that are normally associated with human intelligence, such as reasoning, learning, and self-improvement. This definition considers machine learning to be a subset of artificial intelligence.
(B) AI includes an AI system, generative artificial intelligence, and machine learning when used by insurers to make decisions regarding consumer applications or claims.
(2) “AI system” is a machine-based system that can, for a given set of objectives, generate outputs, such as predictions, recommendations, or content, such as text, images, videos, or sounds, or other
output-influencing decisions made in real or virtual environments. AI systems are designed to operate with varying levels of autonomy.
(3) “Generative artificial intelligence” refers to a class of AI systems that generate content in the form of data, text, images, sounds, or video that is similar to, but not a direct copy of, preexisting data or content.
(4) “Machine learning” refers to a field within AI that focuses on the ability of computers to learn from provided data without being explicitly programmed.