Alabama insurance AI regulation

Alabama has not adopted the NAIC model bulletin. It has enacted SB 63 (2026 Regular Session), enrolled, effective 2026-10-01.

Details

Jurisdiction	Alabama (AL)
NAIC model bulletin	Not adopted
Source	Implementation of NAIC Model Bulletin: Use of AI Systems by Insurers, as of 2026-08-06

Other AI-related insurance activity

Measure	Status
SB 63 (2026 Regular Session), enrolled Where AI is used to determine medical necessity on prior authorization, determinations must be based on the enrollee's medical history, clinical circumstances presented by the requesting provider, and additional clinical information in the medical record. The plan provider must CERTIFY ANNUALLY to the department that the AI (a) does not rely on a group dataset to make determinations, (b) is fairly and equitably applied consistent with HHS regulation and guidance, and (c) does not discriminate directly or indirectly against any subscriber group or enrollee. A determination to deny, delay or modify based on medical necessity must ALWAYS be made by a licensed physician or other competent health care professional evaluating the AI's recommendation against the enrollee's specific clinical circumstances. Section 2. This act shall become effective on October 1, 2026. Correction: No effective date was previously recorded. Enrolled text: October 1, 2026. source	enacted, effective 2026-10-01 ✓ verified against the source text

Measure

Status

SB 63 (2026 Regular Session), enrolled
Where AI is used to determine medical necessity on prior authorization, determinations must be based on the enrollee's medical history, clinical circumstances presented by the requesting provider, and additional clinical information in the medical record. The plan provider must CERTIFY ANNUALLY to the department that the AI (a) does not rely on a group dataset to make determinations, (b) is fairly and equitably applied consistent with HHS regulation and guidance, and (c) does not discriminate directly or indirectly against any subscriber group or enrollee. A determination to deny, delay or modify based on medical necessity must ALWAYS be made by a licensed physician or other competent health care professional evaluating the AI's recommendation against the enrollee's specific clinical circumstances.

Section 2. This act shall become effective on October 1, 2026.

Correction: No effective date was previously recorded. Enrolled text: October 1, 2026.
source

enacted, effective 2026-10-01
✓ verified against the source text

Context

Of 51 tracked US jurisdictions, 25 have adopted the NAIC model bulletin, 4 run their own insurance-specific AI framework (California, Colorado, New York and Texas), and 22 have not adopted it but have other tracked AI-related insurance activity. The bulletin restates that existing unfair trade practice and unfair discrimination law applies to AI-driven decisions; it does not create new statutory obligations.

Two tracks. Insurance AI regulation runs on two largely independent tracks: the NAIC model bulletin (governance, all lines), and a 2026 wave of health-insurance statutes restricting AI as the sole basis for claim or coverage denial. A state can be active on the second while absent from the first. Absence from the NAIC map is not absence of regulation.

See all 51 jurisdictions · This record as JSON