New Jersey Bill A537

• Authority: New Jersey
• Parent authority: State governments
• Jurisdiction: United States
• Collections: U.S. state and local documents
• Most recent activity: Defunct
• Most recent activity date: 2024-06-16

Risk subdomain coverage

Good coverage — Comprehensive governance measures or mitigations with clear procedures relating to the risk subdomain are explicitly described.

• Unfair discrimination and misrepresentation
• Unequal performance across groups

Minimal coverage — Brief mention but no specific mitigations, recommendations or governance measures relating to the risk subdomain are described.

• Governance failure
• Lack of transparency or interpretability

All other risk subdomains had no coverage in this document.

Risk Coverage Summary

The document has good coverage of approximately 2-3 subdomains, with strong focus on unfair discrimination (1.1), unequal performance across groups (1.3), and some coverage of governance failure (6.5). Coverage is concentrated in discrimination and fairness domains related to AI-based insurance underwriting.

Sector coverage

Good coverage — Comprehensive governance measures or mitigations with clear procedures relating to the sector are explicitly described.

• Finance & Insurance

All other sectors had no coverage in this document.

Sectors Summary

The document exclusively governs the Finance and Insurance sector, specifically automobile insurance companies using automated or predictive underwriting systems. No other sectors are regulated by this legislation.

Legislative Status

Hard Law

Legislative Status Summary

This is a binding legislative act with mandatory compliance requirements, enforcement mechanisms through the Department of Banking and Insurance, and clear legal obligations on automobile insurers.

Actors

Proposer

• Entity Types: AI_Governance_Actor
• Entities: New Jersey State Legislature (Senate and General Assembly of the State of New Jersey)
• Summary: The document is enacted by the Senate and General Assembly of the State of New Jersey, as stated in the enactment clause.

Target

• Entity Types: AI_Deployer
• Entities: Automobile insurers using automated or predictive underwriting systems
• Summary: The bill explicitly targets automobile insurers that use automated or predictive underwriting systems, requiring them to provide annual documentation proving non-discrimination.

Enforcer

• Entity Types: AI_Governance_Actor
• Entities: Department of Banking and Insurance; Commissioner of Banking and Insurance
• Summary: The Department of Banking and Insurance receives documentation from insurers, and the Commissioner has authority to adopt rules and regulations to effectuate the act.

Monitor

• Entity Types: AI_Governance_Actor
• Entities: Department of Banking and Insurance; Commissioner of Banking and Insurance
• Summary: The Department of Banking and Insurance receives annual documentation and analysis from insurers to monitor compliance with non-discrimination requirements.

AI Lifecycle Stages

Lifecycle stages covered by the documents, as defined in the OECD Framework for the Classification of AI Systems

• Verify and Validate
• Deploy
• Operate and Monitor

AI Lifecycle Summary

The document primarily focuses on the Deploy and Operate and Monitor stages, requiring annual demonstration of non-discriminatory outcomes from deployed automated underwriting systems. There is implicit coverage of Verify and Validate through the requirement to demonstrate non-discrimination.

Technical Scope

Terms relating to technical scope that are mentioned or implicitly referenced in the document

• AI Systems
• Predictive AI
• Task-specific AI

Technical Scope Summary

The document explicitly mentions automated and predictive underwriting systems, including artificial intelligence. It does not specifically reference AI models, AI systems, frontier AI, general purpose AI, foundation models, generative AI, or compute thresholds. The focus is on automated underwriting technology broadly defined.