Indiana insurance AI regulation

Indiana has not adopted the NAIC model bulletin. It has enacted HB 1271 (2026), House Enrolled Act, adding IC 27-1-52, effective 2026-07-01.

Details

Jurisdiction	Indiana (IN)
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
HB 1271 (2026), House Enrolled Act, adding IC 27-1-52 Sec. 9 runs in BOTH directions and adds a disclosure duty. (a) An insurer may not use an automated process, system or tool, including AI, as the sole basis to downcode a claim based on medical necessity without review of the covered individual's medical record by an employee or contractor of the insurer. (b) A provider may not use an automated tool, including AI, to submit a claim without review by a provider or other person involved in developing it. (c) An insurer must disclose, in an easily accessible and readable manner, when AI is used to make an adverse determination on a prior authorization request or to downcode a claim. Sec. 9. (a) An insurer may not use an automated: (1) process; (2) system; or (3) tool, including artificial intelligence; as the sole basis to downcode a claim based on medical necessity without the review of the covered individual's medical record by an employee or contractor of the insurer. ... (c) An insurer must disclose in an easily accessible and readable manner when artificial intelligence is used to: (1) make an adverse determination on a prior authorization request; or (2) downcode a claim. source	enacted, effective 2026-07-01 ✓ verified against the source text

Measure

Status

HB 1271 (2026), House Enrolled Act, adding IC 27-1-52
Sec. 9 runs in BOTH directions and adds a disclosure duty. (a) An insurer may not use an automated process, system or tool, including AI, as the sole basis to downcode a claim based on medical necessity without review of the covered individual's medical record by an employee or contractor of the insurer. (b) A provider may not use an automated tool, including AI, to submit a claim without review by a provider or other person involved in developing it. (c) An insurer must disclose, in an easily accessible and readable manner, when AI is used to make an adverse determination on a prior authorization request or to downcode a claim.

Sec. 9. (a) An insurer may not use an automated: (1) process; (2) system; or (3) tool, including artificial intelligence; as the sole basis to downcode a claim based on medical necessity without the review of the covered individual's medical record by an employee or contractor of the insurer. ... (c) An insurer must disclose in an easily accessible and readable manner when artificial intelligence is used to: (1) make an adverse determination on a prior authorization request; or (2) downcode a claim.

source

enacted, effective 2026-07-01
✓ 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.

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