IL SB1425

Creates the Artificial Intelligence Systems Use in Health Insurance Act, establishing Department of Insurance oversight of insurers' use of AI systems for making or supporting adverse determinations affecting consumers

Prohibits insurers from issuing adverse consumer outcomes (denial, reduction, or termination of insurance plans or benefits) based solely on AI systems or predictive models

Requires all AI-driven decisions regarding denial, reduction, or termination of coverage to be meaningfully reviewed by a human with authority to override the AI system's determinations

Authorizes the Department of Insurance to investigate insurers' development, implementation, and use of AI systems, including third-party AI tools, governance protocols, and risk management practices

Grants the Department authority to adopt emergency rules for expeditious implementation and to establish disclosure standards for insurers' AI system usage; emergency rulemaking authority expires one year after the Act's effective date