Florida House Bill 527, which would require documented human review before an insurance claim is denied or reduced based on artificial intelligence (AI), passed unanimously in its first House committee.

The bill was introduced in response to concerns that insurers are increasingly relying on automated systems to deny or limit claims without sufficient human oversight, leading to allegations of inaccurate or insufficiently individualized decisions, particularly in health and workers’ compensation cases.

Committee amendments removed the term “algorithm” to clarify that the bill targets claim decision-making rather than underwriting or general technology tools. Supporters emphasized that the proposal does not prohibit AI use but instead establishes “human-in-the-loop” safeguards and accountability. Industry representatives testified in opposition, arguing that existing law already governs claims practices, warning of duplicative review requirements and operational burdens, and suggesting broader study of AI use across insurance lines.

With the legislative session set to adjourn March 13th, the bill has advanced more quickly than anticipated. House Bill 527 was taken up on the House floor on second reading, no amendments were offered, and the House voted to waive the rules to proceed directly to third reading and final passage. The bill passed unanimously, 108–0, and now moves to the Senate for consideration.

If enacted, the law would take effect July 1, 2026, though potential federal actions limiting state-level AI regulation could present future legal considerations.