Bill Text: TX HB4635 | 2025-2026 | 89th Legislature | Introduced

Texas House Bill 4635

Introduced

Bill Title: Relating to disclosure of the use of artificial intelligence in the denial of insurance claims.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Introduced - Dead) 2025-05-07 - Left pending in committee [HB4635 Detail]

Download: Texas-2025-HB4635-Introduced.html

	89R16182 SCR-D

	By: Garcia Hernandez	H.B. No. 4635



	A BILL TO BE ENTITLED
	AN ACT
	relating to disclosure of the use of artificial intelligence in the
	denial of insurance claims.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subtitle B, Title 5, Insurance Code, is amended
	by adding Chapter 526 to read as follows:
	CHAPTER 526. USE OF ARTIFICIAL INTELLIGENCE
	Sec. 526.001. DEFINITIONS. In this chapter:
	(1) "Artificial intelligence" means an engineered or
	machine-based system that varies in autonomy and may, for explicit
	or implicit objectives, infer from the input the system receives
	how to generate outputs that can influence physical or virtual
	environments.
	(2) "Health maintenance organization" and "insurer"
	have the meanings assigned by Section 401.001.
	Sec. 526.002. DISCLOSURE REQUIRED. An insurer or health
	maintenance organization that denies a claim based on a
	determination made by artificial intelligence shall provide to the
	claimant with notice of the denial a written disclosure containing
	the following information:
	(1) a notification that the denial was based on a
	determination made by artificial intelligence;
	(2) the basis for the determination made by artificial
	intelligence; and
	(3) instructions on appealing the denial with the
	insurer or health maintenance organization.
	SECTION 2. Section 526.002, Insurance Code, as added by
	this Act, applies only to a claim submitted on or after the
	effective date of this Act.
	SECTION 3. This Act takes effect September 1, 2025.