INSURANCE: Creates the Louisiana Artificial Intelligence Insurance Fairness Act (OR +$1,029,533 SG EX See Note)

HB 880, the Louisiana Artificial Intelligence Insurance Fairness Act (LAIFA), establishes rules for insurers using AI in underwriting, pricing, and claims decisions. It directly affects Louisiana insurance companies (covered insurers) that use AI systems for homeowners, auto, commercial property, health, or life insurance, particularly protecting Black, Hispanic, Indigenous, low-income, and historically redlined communities from biased algorithmic decisions. Key provisions require annual audits to detect discriminatory outcomes, ban the use of "proxy variables" (like zip codes) that correlate with protected classes, mandate clear explanations for AI-driven adverse decisions, and create a private right to sue for affected consumers. The law does not ban AI use but ensures it is transparent, fair, and accountable, aligning with existing anti-discrimination protections.