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  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.