Key Insurance AI Laws
| Jurisdiction | Bill # | Effective Date | Key Requirement | Source |
|---|---|---|---|---|
| Florida | S0794 | Jan 01, 2026 | This bill mandates that insurance claim denials be made by qualified human professionals, prohibiting sole reliance on A... | Official text |
| Colorado | SB 24-205 | Jun 30, 2026 | The Colorado Artificial Intelligence Act requires governance, reasonable care by developers and deployers of AI systems ... | Official text |
| Alabama | SB 63 | Oct 01, 2026 | SB 63 proposes to regulate AI use in health care coverage decisions in Alabama, officially described as 'Insurance'. Spe... | Official text |
Insurance AI Compliance FAQ
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Does the Colorado AI Act apply to insurance?Yes. Colorado SB 24-205 (effective June 30, 2026) explicitly covers AI systems used to make or substantially contribute to consequential decisions, which includes insurance underwriting, pricing, and claims decisions. Insurers deploying high-risk AI must conduct impact assessments, implement risk management programs, and provide consumer notice. The Colorado Division of Insurance has issued supplemental guidance for insurer compliance.
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Which states regulate AI in insurance underwriting?Colorado SB 24-205 covers insurance as a high-risk AI domain. Connecticut has enacted algorithmic fairness requirements for insurance. New York DFS has issued guidance on AI in underwriting. Alabama SB 63 prohibits AI-only health insurance coverage denials. The NAIC Model Bulletin on AI (adopted December 2023) provides a framework that state insurance departments are implementing through regulation and examination guidance.
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Are AI claims processing tools regulated?Yes. Multiple states require that AI-driven claims decisions include human review. Alabama SB 63 prohibits insurers from denying health insurance claims based solely on AI without physician review. Colorado SB 24-205 requires impact assessments for AI in claims processing. The NAIC Model Bulletin recommends that insurers maintain human oversight and audit AI claims tools for unfair outcomes.
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What is the NAIC AI model bulletin?The National Association of Insurance Commissioners (NAIC) adopted a Model Bulletin on the Use of AI Systems by Insurers in December 2023. It establishes expectations that insurers using AI must: maintain governance frameworks, conduct testing for unfair discrimination, provide consumer transparency, and ensure human oversight of AI-driven decisions. While not law itself, state insurance departments use it as guidance for examinations and enforcement.
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Do insurers need to disclose AI use to consumers?Yes, under multiple frameworks. Colorado SB 24-205 requires consumer notification when AI substantially contributes to insurance decisions. The NAIC Model Bulletin recommends transparency about AI use. Connecticut requires disclosure of algorithmic decision-making in insurance. Several additional states have introduced bills requiring insurers to explain AI-driven decisions to policyholders when requested.
Insurance AI Compliance Checklist
- Conduct impact assessments for AI systems used in underwriting, pricing, and claims (Colorado SB 24-205)
- Test AI models for unfair discrimination across protected classes (Colorado SB 24-205, NAIC Model Bulletin)
- Maintain human oversight of AI-driven claims and coverage decisions (Alabama SB 63, NAIC Model Bulletin)
- Notify consumers when AI contributes to insurance decisions (Colorado SB 24-205)
- Establish an AI governance framework with board-level accountability (NAIC Model Bulletin)
- Document and audit AI model outputs for adverse consumer outcomes (NAIC Model Bulletin, Connecticut regulations)
All Insurance AI Bills (74)
Artificial intelligence: defenses.
AB316 proposes adding Section 1714.46 to the Civil Code, addressing civil actions involving AI. This analysis is based on limited information; further details are needed.
Relating to use of artificial intelligence in utilization review conducted for health benefit plans.
This bill addresses the use of artificial intelligence in utilization reviews for health benefit plans in Texas. Specific details, provisions, and penalties require verification from the full bill text.
Prohibits certain discrimination by automated decision systems.
This bill prohibits discrimination by automated decision systems against protected classes in financial and healthcare services.
Insurance; use of artificial intelligence in making certain decisions regarding coverage; prohibit
HB887 prohibits the use of artificial intelligence in decisions related to insurance coverage, healthcare, and public assistance in Georgia.
Place requirements on the use of artificial intelligence systems by health carriers in making determinations about the provision of health care services.
SB169 seeks to regulate AI use by health carriers in healthcare decisions in South Dakota, based on the bill's title and description.
AN ACT relating to the promotion of family well-being and making an appropriation therefor.
This bill extends public assistance eligibility, mandates human review of benefits, establishes the Basic Health Program Design Task Force, and directs federal waiver applications.
INS-ADVERSE DETERMINATION
The bill mandates that only clinical peers make adverse determinations in health care plans using automated processes, effective January 1, 2025.
A bill for an act prohibiting the use of an automated decision-making system to alter the price of a product or service for a specific individual based on surveillance data, and providing civil penalties.
This bill prohibits altering prices for individuals using automated systems based on surveillance data. Full bill text is needed for details on civil penalties.
Prior authorization usage of algorithms or artificial intelligence prohibition provision
SF3984 prohibits the use of algorithms or AI in prior authorization processes in Minnesota. Specific exceptions and definitions are not confirmed due to lack of bill text.
Prohibits certain discrimination by automated decision systems.
The bill prohibits discrimination by automated decision systems against protected classes in loans, insurance, and healthcare services.
Health Insurance; prohibiting issue of outcomes with AI; requiring decisions to be made by provider; requiring disclosures. Emergency.
SB2038 prohibits AI in health insurance decisions, requires decisions by licensed providers, mandates specific disclosures, and includes an emergency clause for immediate effect.
Relating To The Hawaii Patients' Bill Of Rights And Responsibilities Act.
SB2167 modernizes the Hawaii Patients' Bill of Rights by expanding enforcement authority, improving network adequacy, establishing telehealth parity, and addressing automated decision systems.
Expressing the sense of the House of Representatives that the Centers for Medicare & Medicaid Services should halt the pilot program and should not jeopardize seniors' access to critical health care by utilizing artificial intelligence to determine Medicare coverage.
This bill expresses the House's sense that CMS should stop using AI to determine Medicare coverage to protect seniors' access to healthcare.
Relating To The Patients' Bill Of Rights.
HB2537 establishes patient rights regarding timely access to healthcare, requires safeguards for health information, sets timelines for prior authorization, and details provider protections.
Downcoding medical claims.
AB2431 proposes adding sections to the Health and Safety Code and Insurance Code to regulate downcoding medical claims, though specific guidelines for insurers are unconfirmed.
Relating To Insurance.
SB2953 establishes governance and consumer protections for AI use in insurance, requiring rule adoption by the Insurance Commissioner.
Relating To Algorithmic Discrimination.
This bill prohibits algorithmic discrimination in decision-making and mandates transparency and reporting for covered entities, including updating notices within thirty days of changes.
TRANSPARENCY IN DOWNCODING ACT
IL HB4735: TRANSPARENCY IN DOWNCODING ACT excludes self-insured plans under ERISA and Workers' Compensation-related health care.
SURVEILLANCE-BASED PRICING
HB4985 aims to regulate the use of surveillance data in pricing systems, with enforcement by the Attorney General. The bill includes penalties and private legal actions.
Clarifies that owners of self-driving motor vehicles must comply with existing insurance requirements.
This bill clarifies that owners of self-driving vehicles must comply with existing insurance requirements in New Jersey.
Relating to the use of artificial intelligence-based algorithms by health benefit plan issuers, utilization review agents, health care providers, and physicians.
This bill addresses the use of AI algorithms by health benefit plan issuers, healthcare providers, and physicians in Texas.
A bill for an act relating to utilization review organizations, prior authorizations and exemptions, medical billing, and independent review organizations.
The bill addresses utilization review organizations, prior authorizations, and medical billing practices in Iowa.
Prohibits motor vehicle insurers from discrimination on the basis of socioeconomic factors in determining algorithms used to construct actuarial tables, coverage terms, premiums and/or rates.
This bill prohibits motor vehicle insurers in New York from using socioeconomic factors in algorithms for actuarial tables, coverage terms, premiums, and/or rates.
Relates to the use of artificial intelligence by insurers and clinical peer reviewers for utilization review; establishes additional notice requirements for adverse determinations.
This bill relates to the use of AI by insurers in utilization reviews and establishes notice requirements for adverse determinations.
Relating to disclosure of the use of artificial intelligence in the denial of insurance claims.
The bill mandates insurers to disclose when AI is used in denying insurance claims, including the basis for the decision and appeal instructions.
Personal rights: automated decision systems.
AB2269 mandates businesses using automated decision systems in California to assess and report on their impact, focusing on bias and discrimination.
Provides that a person may operate a fully autonomous vehicle on the public roads of this state without a human driver provided that the automated driving system is engaged and the vehicle meets certain conditions; defines terms; requires insurance and that such vehicle is registered as a fully…
This bill allows fully autonomous vehicles to operate on public roads without a human driver, provided certain conditions are met, and permits local rules in large cities.
Insurance Fraud Detection Act; establish trust fund to assist Mississippi Insurance Department in cyber fraud.
The Insurance Fraud Detection Act amends Sections 83-2-33 and 83-5-72 of the Mississippi Code of 1972 to establish a trust fund for the Mississippi Insurance Department.
Relating To Artificial Intelligence.
Establishes consumer protection requirements for AI systems, including disclosures, incident reporting, and classifies certain violations as unfair or deceptive acts or practices.
Promotes transparency and accountability in the use of artificial intelligence by health insurers to manage coverage and claims.
Bill S2010 aims to promote transparency and accountability in AI use by health insurers in Rhode Island. Specific provisions will be included once the full bill text is available.
Mississippi Medical Judgement Protection Act; create.
MS HB1717: Mississippi Medical Judgement Protection Act; last action pending. Authorizes enforcement by licensing authorities, Department of Insurance, and Division of Medicaid, with specific delayed enforcement provisions. Requires tamper-resistant audit logs.
Insurance Department Fraud Detection Trust Fund; rename Insurance Department Fund and redesignate as a special fund.
HB986 proposed renaming and redesignating the Insurance Department Fund but died in committee.
Relating To Consumer Protection.
This bill prohibits surveillance pricing based on electronic surveillance data and deems it an unfair practice, with certain exemptions.
Insurance Department Fraud Detection Trust Fund; rename Insurance Department Fund and redesignate as a special fund.
MS HB1020: Renames the Insurance Department Fund as the 'Insurance Department Fraud Detection Trust Fund', redesignates it as a special fund, and increases contribution caps.
Hospital and Medical Services Utilization Review Act; requiring utilization review organization that uses AI to adhere to requirements; prohibiting AI from making certain determinations. Effective date.
SB1967 requires utilization review organizations using AI to adhere to specific requirements and prohibits AI from making clinical determinations.
Requires certain disclosures by automobile insurers relating to the use of telematics systems in determining insurance rates and/or discounts.
Bill A10364 requires auto insurers to disclose telematics use for rates/discounts. Specifics are not confirmed due to lack of full bill text.
An act relating to the use of artificial intelligence in health care coverage decisions
Bill H0776 addresses the use of artificial intelligence in health care coverage decisions in Vermont. Specific provisions cannot be confirmed as the full bill text is not available.
Human services: medical services; use of artificial intelligence tools to make decisions regarding claims; prohibit. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 107b.
This bill addresses the use of AI in medical claims processes, but details require verification from the full bill text.
Mandatory Human Reviews of Insurance Claim Denials
The bill mandates that insurance claim denials be made by human professionals, prohibiting AI as the sole basis. The Office of Insurance Regulation can conduct examinations under certain circumstances.
AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 27; Title 56 and Title 71, relative to health insurance.
This bill, known as the 'Regulate Artificial Intelligence (AI) In Health Care Act,' amends Tennessee Code Annotated, Title 8, Chapter 27; Title 56 and Title 71.
Various mental health and insurance matters.
The bill prohibits AI from impersonating mental health professionals and sets standards for insurance reimbursement for mental health services.
Colorado Artificial Intelligence Act
The Colorado Artificial Intelligence Act requires governance, reasonable care by developers and deployers of AI systems to prevent algorithmic discrimination, disclosure, impact assessments, and technical documentation.
Interim study to examine the impact of artificial intelligence on Nebraska's private and public sectors, including the technology and insurance sectors
This interim study will examine the impact of artificial intelligence on Nebraska's private and public sectors, focusing on technology and insurance.
Clarifies that owners of self-driving motor vehicles must comply with existing insurance requirements.
This bill clarifies that owners of self-driving vehicles in New Jersey must comply with existing insurance requirements.
To Prohibit Healthcare Providers And Healthcare Insurers From Using Artificial Intelligence In The Delivery Of Healthcare Services Or The Generation Of Medical Records Unless Certain Requirements Are Met.
This bill was withdrawn and does not currently impose any requirements or penalties regarding AI use in healthcare.
TAME Extreme Weather and Wildfires Act Transformational Artificial intelligence to Modernize the Economy against Extreme Weather and Wildfires Act
This bill directs the use of AI by NOAA to adapt to extreme weather, enhancing predictive capabilities.
Provides for notice requirements where an insurer authorized to write accident and health insurance in this state, a corporation organized pursuant to article forty-three of this chapter, or a health maintenance organization certified pursuant to article forty-four of the public health law uses…
The bill requires insurers, corporations, and health maintenance organizations using AI in utilization reviews to provide written notice detailing the AI's role, data used, and decision criteria, with no exceptions, at the start of the review process.
Prohibits motor vehicle insurers from discrimination on the basis of socioeconomic factors in determining algorithms used to construct actuarial tables, coverage terms, premiums and/or rates.
Prohibits motor vehicle insurers in New York from using algorithms that discriminate based on socioeconomic factors in actuarial tables, coverage terms, premiums, and/or rates.
Establishes requirements for the use of artificial intelligence, algorithm, or other software tools in utilization review and management; defines artificial intelligence.
Bill A03991 sets requirements for AI, algorithms, and software tools in utilization review and management; the full text is needed to confirm specifics.
Mandatory Human Reviews of Insurance Claim Denials
House Bill 527, titled 'Mandatory Human Reviews of Insurance Claim Denials', mandates human review for insurance claim denials by workers' compensation carriers, insurers, and HMOs, prohibiting AI as
Health care coverage: prior authorization.
AB 512 aims to amend timelines for prior authorization responses by health plans and insurers, proposing a 48-hour response for standard requests and 24-hour for urgent ones, with specific definitions and exceptions confirmed in the bill.
Relating To The Patients' Bill Of Rights.
This bill establishes patient rights regarding timely access to care, mandates disclosure of automated decision tools, sets requirements for prior authorization determinations, and expands enforcement authority.
Disclosure of artificial intelligence use in health care.
The bill mandates health care providers and insurers in Indiana to disclose their use of AI technology in health care decisions and communications with patients.
Providing for artificial intelligence in facilities, for artificial intelligence use by insurers and for artificial intelligence use by MA or CHIP managed care plans; imposing duties on the Department of Health, the Insurance Department and the Department of Human Services; and imposing penalties.
SB1113 amends Titles 35 and 40 to regulate AI in health facilities, insurers, and MA or CHIP managed care plans, detailing departmental duties and imposing penalties.
Prohibits discrimination through the use of clinical algorithms; provides exceptions for clinical algorithms that rely on variables to appropriately make decisions, including to identify, evaluate, and address health disparities.
Prohibits discrimination via clinical algorithms; allows exceptions for algorithms using variables to address health disparities.
Relating to use of artificial intelligence in utilization review conducted for health benefit plans.
The bill's text is not available for review, so specific provisions and requirements cannot be confirmed.
Relating to the use of artificial intelligence-based algorithms in utilization review conducted for certain health benefit plans.
This bill mandates health insurers to disclose the use of AI algorithms in utilization reviews and ensure compliance with bias minimization and clinical guidelines.
California Preventing Algorithmic Collusion Act of 2025.
SB-295 aims to add Chapter 8 to the Business and Professions Code to address algorithmic collusion in California.
Requires certain disclosures by automobile insurers relating to the use of telematics systems in determining insurance rates and/or discounts.
The bill mandates disclosures by auto insurers about telematics systems used in determining insurance rates and discounts.
Insurers' Liabilities and Responsibilities
The bill mandates that insurers must comply with valued policy law and prohibits AI from denying claims, requiring human review instead.
Relating to the use of certain automated systems in, and certain adverse determinations made in connection with, the health benefit claims process.
SB815 pertains to the use of automated systems and adverse determinations in Texas health benefit claims, with specific details pending the full bill text.
Mandatory Human Reviews of Insurance Claim Denials
This bill mandates that insurance claim denials be made by qualified human professionals, prohibiting sole reliance on AI.
Prohibits the use of external consumer data and information sources being used when determining insurance rates; provides that no insurer shall unfairly discriminate based on race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, or gender…
This bill prohibits insurers from using external consumer data and predictive models that unfairly discriminate based on protected characteristics.
An Act Prohibiting Health Carriers From Using Artificial Intelligence In The Evaluation And Determination Of Patient Care.
SB447 prohibits health carriers from using AI in patient care evaluations to ensure patient access to necessary medical services.
Health Claims & AI
This bill mandates that a health care professional, as defined in Section 44-30-20, supervise and review healthcare coverage decisions made using automated decision-making tools.
Prohibits the use of external consumer data and information sources being used when determining insurance rates; provides that no insurer shall unfairly discriminate based on race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, or gender…
This bill prohibits insurers from using external consumer data and algorithms that unfairly discriminate based on protected characteristics.
Provides for notice requirements where an insurer authorized to write accident and health insurance in this state, a corporation organized pursuant to article forty-three of this chapter, or a health maintenance organization certified pursuant to article forty-four of the public health law uses…
This bill mandates insurers to notify insureds about the use of AI in utilization reviews and requires submission of AI algorithms to the department.
Health care plans; to regulate the use of artificial intelligence in determinations of coverage
SB 63 proposes to regulate AI use in health care coverage decisions in Alabama, officially described as 'Insurance'. Specific guidelines cannot be confirmed.
Drive My Car Act.
SB 1315, the Drive My Car Act, proposes adding a new chapter to the Insurance Code concerning autonomous vehicles, but specific provisions are not detailed due to lack of full bill text.
A bill for an act relating to utilization review organizations' use of artificial intelligence, prior authorization determinations and exemptions, and prepayment audits, and including applicability provisions.(See SF 2421.)
This bill regulates utilization review organizations' use of AI in prior authorization processes and establishes peer review requirements, with applicability provisions until 2027.
Relating To Algorithmic Discrimination.
SB59 prohibits discriminatory algorithmic decision-making and mandates notifications and annual reports to the Attorney General.
A bill for an act relating to utilization review organizations' use of artificial intelligence, prior authorization determinations and exemptions, and audits, and including applicability provisions.(Formerly SSB 3118.)
This bill regulates AI use in prior authorization by UROs, ensuring human oversight in denials and exemptions for cancer screenings.
Artificial intelligence; regulate use in health coverage decisions
This bill addresses the use of artificial intelligence in health coverage decisions in Alabama, but lacks specific provisions or details.
Relates to the use of artificial intelligence by insurers and clinical peer reviewers for utilization review; establishes additional notice requirements for adverse determinations.
The bill addresses AI use in utilization reviews, but specific details about notifications and algorithm criteria require verification from the full bill text.
AI Regulation in the Insurance Industry
State legislatures across the United States are actively developing artificial intelligence regulations that directly affect Insurance companies and practitioners. These laws address a wide range of concerns including algorithmic discrimination, automated decision-making, data privacy, consumer transparency, and the use of high-risk AI systems that can materially affect individuals' lives. As of 2026, 27 states have introduced or enacted legislation with direct implications for Insurance.
Compliance requirements vary significantly by state, making it essential for Insurance legal and compliance teams to track both enacted laws and pending bills. Key obligations may include conducting algorithmic impact assessments, providing consumer disclosures when AI is used in consequential decisions, implementing risk management programs, and ensuring human-in-the-loop oversight for high-stakes outcomes. Penalties for non-compliance can be substantial — see our Penalty Tracker for details by state.
To assess your organization's specific compliance obligations under current and upcoming Insurance AI regulations, use our Am I Affected? tool. For upcoming enforcement dates, visit the Deadlines page or the Deadline Calendar. Use the Bill Comparator to analyze differences between state laws side-by-side.