California Insurance AI Disclosures (SB 1120)
Effective date
Penalty
Under existing insurance regulatory framework.
Obligations mapped
Tracked
Overview
Requires AI disclosure in insurance sector contexts. Sector-specific regulation for insurers using AI in underwriting, claims, or pricing decisions.
This is a sector-specific state law with AI-related duties.
See if this regulation applies to your company with the free exposure scan.
Who this applies to
This regulation applies to the following roles:
- Developers of covered AI systems
- Deployers and users of covered AI systems
- Organizations operating in California
This regulation applies to both companies that build AI products and companies that use AI tools from other vendors.
SB 1120
AI categories covered
- Insurance
- Healthcare AI
Specific AI use cases:
- Insurance underwriting
- Insurance prior authorization
- Fraud detection
- insurance claims ai
What this requires you to do
Detailed obligation packs are not yet mapped for this entry in XIRA. Obligation areas from the catalog are listed below.
What this requires you to do
Disclose AI use. Make it clear to users when they are interacting with AI-generated content or AI-driven systems.
Provide transparency notices. Inform affected individuals that AI is being used and how it influences decisions.
Maintain records. Keep documentation of your AI systems, decisions made, and compliance activities.
Implement a risk management program. Maintain ongoing processes to identify, assess, and mitigate AI-related risks.
Regulation summaries are simplified for readability and may not capture every nuance of the underlying statute. Verify important details against primary sources linked on this page.
Enforcement and penalties
Under existing insurance regulatory framework.
Penalty amounts are based on statutory text and may be subject to adjustment, judicial interpretation, or enforcement discretion.
Legislative history
effective
Takes effect
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California AI regulation guide lists every tracked rule for this jurisdiction with timelines and obligation tallies.
Regulation summaries are simplified for readability and may not capture every nuance of the underlying statute. Verify important details against primary sources linked on this page.