LA HB880

Regulates AI and algorithmic decision systems used by insurers in underwriting, rating, policy issuance, renewal, cancellation, and claims handling for personal and commercial lines in Louisiana

Prohibits insurers from using credit scores, protected class characteristics, social media data, and consumer purchasing data as input variables for homeowners insurance, and subjects proxy variables like ZIP code and education level to heightened scrutiny for disparate impact

Requires covered insurers to conduct annual disparate impact audits by qualified independent actuaries or data scientists, file certifications with the Commissioner by June 30 each year, and adopt written AI governance policies with a designated senior officer

Mandates consumer disclosures when AI is used in insurance decisions, provides consumers a right to explanation within 21 days of request, and guarantees human review of adverse actions within 30 days

Establishes civil penalties ranging from $5,000 to $250,000 per violation depending on type, creates a private right of action with statutory damages of $1,000-$10,000 per violation plus attorneys' fees, and creates a 15-member AI Insurance Fairness Advisory Board