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Article
Courtesy of Channel 5 WPTV
By
Matt Sczesny
Published December 28, 2025
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WATCH VIDEO |
PALM BEACH COUNTY — Rep. Hillary Cassell presented her
bill to the House Subcommittee on Banking and Insurance, where it gained
approval. The legislation would prohibit insurers from denying claims based
exclusively on automated AI outputs.
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"The legislation is
about accountability and restoring confidence for
policyholders," Cassell said during the hearing.
The use of artificial intelligence has expanded rapidly
across industries, particularly in insurance, where denied
hurricane claims in Florida have raised questions in recent
years about automated decision-making processes.
Gary and Tracy, new Florida residents, expressed support for
the proposed restrictions on AI-driven claim denials.
"I definitely agree with that. I think it takes the human
element out. There's not that emotion involved," Tracy said. |
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The debate reflects broader tensions about AI's role in
the insurance industry. At an insurance summit in Orlando this month,
Florida State University professor Charles Nice discussed the technology's
growing influence.
"I think these kinds of technology and what we do and how we deliver our
product is going to be vastly different," Nice said.
Industry leaders at the summit acknowledged AI as something that cannot be
ignored, but they've expressed concerns about the proposed legislation to
lawmakers.
"We have concerns that HB 527 imposes some requirements that could limit the
use of AI in claims handling, reducing efficiency and speed, ultimately to
the detriment of consumers who expect timely resolution," industry
representatives told legislators.
The bill now advances through the legislative process, with more debate
expected at the state capitol as lawmakers weigh consumer protection against
industry efficiency concerns.
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