California Insurance AI Disclosures (SB 1120)
In effect since
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.
California AI regulation guide lists every tracked rule for this jurisdiction with timelines and obligation tallies.
Who this applies to
This regulation targets specific entity types named in the statute (for example government agencies, platforms, or political committees). It is not a general obligation on every private AI developer or deployer. Read the overview and source text to confirm whether your organization is covered.
AI categories covered
- Insurance
- Healthcare AI
Specific AI use cases:
- Insurance underwriting
- Insurance prior authorization
- Fraud detection
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.
Enforcement and penalties
Under existing insurance regulatory framework.
Legislative history
How this law got here
Latest
effectiveTakes effect
Earliest
Source
Read the full text
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB1120
Last verified: April 9, 2026
Always verify current language and amendments at the official source.
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