LLMs formalize insurance law with Defeasible Deontic Logic

Researchers have developed a system that uses Large Language Models (LLMs) to formalize insurance policy clauses into Defeasible Deontic Logic (DDL). This approach combines rule-based reasoning with exceptions to accurately represent legal norms and automate claim evaluations. The system preprocesses policy text into DDL rules, which are then applied to claim facts to generate a coverage decision with an auditable reasoning trace, aiming for direct deployability on capable LLMs. AI

IMPACT Enables more robust and auditable automation of complex legal and insurance processes.

RANK_REASON The cluster describes a novel application of LLMs to formalize legal text into a specific logic system for insurance claim automation, presented in a research paper format. [lever_c_demoted from research: ic=1 ai=1.0]

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• Defeasible Deontic Logic
• Large Language Models
• LLMs

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