Florida HB 527: Your Insurance Company May Soon Be Required to Have a Human Review Your Claim Denial
If you've ever had an insurance claim denied and suspected something didn't add up, you may have been right — and Florida lawmakers are now doing something about it.
Florida House Bill 527, titled Mandatory Human Reviews of Insurance Claim Denials, passed the Florida House unanimously and was received by the Senate on March 5, 2026. If signed into law, it would take effect July 1, 2026 and fundamentally change how insurance carriers in Florida are allowed to handle your claim.
Here's what you need to know.
What Is HB 527?
HB 527 is a direct response to a growing national concern: insurance companies increasingly relying on algorithms and artificial intelligence to process — and deny — policyholder claims with little to no human involvement.
The bill was sponsored by Rep. Hillary Cassel (R-Dania Beach), vice chair of the House Insurance and Banking Committee, who said the legislation "addresses a growing challenge in our insurance markets" with a "clear and reasonable safeguard" against algorithm-driven decisions. Cassel tied the bill directly to national controversy over automated claim denials, citing a class action lawsuit alleging that a major national health insurer's AI system was responsible for an overwhelming rate of erroneous denials.
The core principle of HB 527 is simple: a computer cannot be the only reason your claim is denied.
What the Bill Would Actually Require
If HB 527 becomes law, Florida insurers — including property and casualty insurers, workers' compensation carriers, and HMOs — would have to meet several new requirements:
Human review of every denial. Any decision to deny a claim, deny part of a claim, or reduce a claim payment must be made by a "qualified human professional" — defined as an individual who, under the Florida Insurance Code, actually has the authority to adjust or deny a claim. The human reviewer cannot simply rubber-stamp an AI recommendation; they must independently confirm the facts of the claim and verify how policy terms apply.
AI stays in an assistive role only. Carriers may continue using algorithms, AI systems, and machine learning tools to help process claims — for intake, triage, and analysis. But none of those tools can serve as the sole basis for an adverse decision. The human always has the final say on denials and reductions.
Denial letters must disclose human review. If your claim is denied, the written denial must include documentation that a qualified human reviewed the claim and that AI was not the exclusive basis for the decision. This creates a paper trail that didn't exist before.
Carriers must update their claims manuals. Any insurer using AI in its claims process must document exactly how those systems are used and how the company complies with the new law. These manuals are subject to regulatory review by the Office of Insurance Regulation (OIR).
Regulators get audit authority. The OIR is authorized to conduct market conduct examinations and investigations to verify carriers are actually complying — not just writing it down.
Why This Matters for Florida Property Owners
Florida policyholders — especially homeowners filing property damage claims after storms, water events, and fires — have good reason to pay attention to this bill.
Property insurance claims in Florida have long been a battleground. Carriers have increasingly deployed automated tools to estimate damage, flag claims for denial, and generate underpayment recommendations, all while policyholders are left without a clear human contact responsible for the outcome. HB 527 directly addresses that accountability gap.
If the bill passes:
- You'll have the legal right to know that a qualified human — not just a software output — made the decision to deny or reduce your claim.
- Insurers will be required to maintain records of who made the denial, why they made it, and what documentation supported it.
- Regulators will have new tools to audit carriers suspected of using AI to systematically undervalue or deny legitimate claims.
What the Insurance Industry Says
Opposition to HB 527 came from major insurance trade groups, including the Florida Insurance Council, the American Property Casualty Insurance Association, and the Personal Insurance Federation of Florida. Their concerns center primarily on speed: they argue that mandating human review for every adverse decision will slow down the claims process.
There may be legitimate operational questions about how carriers adapt — but it's worth noting that "speed" in auto-denial has often come at the expense of accuracy. Requiring a licensed professional to own the decision isn't a burden. It's what policyholders have always had the right to expect.
What Happens Next
As of March 6, 2026, HB 527 has passed the Florida House and is now in the Senate. The 2026 regular session runs through March 13, 2026. If the Senate passes the bill, it heads to Governor DeSantis for signature. With unanimous House support and a companion bill (SB 202) moving through the Senate simultaneously, the prospects for passage are strong.
We'll continue monitoring this legislation and will update our clients as it moves forward.
Already Dealing With a Denied or Underpaid Claim?
HB 527 hasn't been signed yet — but that doesn't mean you're without options right now.
At NeJame Claims Adjusting, we represent policyholders, not insurance companies. Our licensed public adjusters review your policy, document your loss thoroughly, and advocate directly on your behalf to maximize your settlement. Whether your claim was denied by an algorithm, an adjuster, or some combination of both, we can help you understand what you're actually owed.
Contact NeJame Claims Adjusting today for a free claim review. You paid for your coverage — you deserve to know if you're getting what you're owed.
NeJame Claims Adjusting is a licensed public adjusting firm based in Maitland, Florida, serving property owners throughout Central Florida and the surrounding region. Learn more at nejameclaims.com.
