A federal court in Minnesota has allowed broad discovery into UnitedHealth Group's use of an AI tool, nH Predict, in a lawsuit alleging the insurer violated its plan documents by substituting the algorithm for clinician judgment. The July 2026 ruling in Estate of Lokken v. UnitedHealth Group gives insurers a roadmap for the operational records they may have to produce when AI-assisted coverage decisions face legal challenges.
AI use can open the door to broad discovery
In Lokken, the court permitted plaintiffs to seek documents on governance structures, training materials, oversight mechanisms, and vendor relationships because the complaint alleged that AI replaced individualized clinical judgment. Insurers should be ready to demonstrate that AI acts as a support tool, not a replacement for required human review. Clear documentation, user training, and oversight procedures help show how AI recommendations are generated, reviewed, and acted upon.
Policy language drives discovery risk
The court's analysis hinged on whether UnitedHealth's actual process matched its representations about how coverage decisions would be made. If evidence-of-coverage documents or member communications promise clinician involvement, insurers must ensure their workflows support that promise. Any gap between what documents say and what happens in practice can increase litigation exposure. For insurers, staying current on how AI intersects with coverage promises is critical-a topic covered by many AI for Insurance training resources.
Proprietary AI materials may be protected, but operational records are not
The court denied requests for the AI system's source code, underlying data, and embedded medical guidelines, recognizing the need to protect proprietary technical information. However, it still required production of documents showing how AI affects claims handling, oversight, and decision-making. Insurers can expect courts to shield technical secrets while demanding transparency into governance and operational practices.
Why this matters for insurance professionals
The Lokken decision signals that courts will scrutinize AI's role in claims handling when contractual compliance is at issue. Insurers can reduce litigation risk by aligning policy language with real-world workflows, maintaining detailed oversight records, and documenting the role of human review in AI-assisted decisions. Preparing these materials before a lawsuit lands is cheaper than scrambling during discovery.
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