AI and data in underwriting and claims laws by state

176 bills on AI and data in underwriting and claims in 43 jurisdictions, 16 of them enacted in 2025 and 2026. The laws come first, with what each requires, then the bills that moved most recently.

  • 16 laws enacted in 2025 and 2026, in 12 states. Most: California (2), Colorado (2), Maryland (2).
  • 176 bills in 43 jurisdictions. Latest action 15 October 2026.

Updated 2 November 2026LawsRecent billsBy state

Enacted in 2025 and 2026

16 laws, by state. Laws enacted before 2025 are not listed.

Alabama

  • Enacted

    SB 63: Health care plans; to regulate the use of artificial intelligence in determinations of coverage

    Insurers must ensure that determinations to deny, reduce, or defer prior authorization requests are always made by a licensed physician or other competent health care professional, not exclusively by artificial intelligence. Insurers must base AI-assisted determinations on the enrollee's medical history, clinical circumstances, and medical records, and must disclose AI use to plan sponsors or enrollees.

    Took effect 1 October 2026

Arizona

  • Enacted

    HB 2174: insurance; modeling organizations; predictive models

    Modeling organizations must file with the director their constitution, bylaws, resident agent information, and types of insurance before making predictive models available to insurers in Arizona. Insurers may not use predictive models unless approved by the director. Modeling organizations must not engage in unfair practices.

California

  • Enacted

    AB 1798: Genetic testing for life and disability insurance.

    Life or disability insurers must not cancel, limit, deny coverage, or make adverse underwriting decisions based on genetic characteristics or genetic test results, except for life or disability policies with face value exceeding $1,500,000 where test results are in the medical record and not from direct-to-consumer tests. Insurers must not require, request, or use genetic information for insurance purposes.

    Takes effect 1 January 2027

  • Enacted

    SB 354: Insurance Information and Privacy Protection Act.

    Licensees, surplus line insurers, reinsurers, and third-party service providers must collect only personal information reasonably necessary for insurance transactions, provide clear privacy notices, obtain consumer consent for non-transaction uses, retain records per written policies, and prohibit retaliation against consumers exercising privacy rights.

    Takes effect 1 January 2027

Colorado

  • Enacted

    HB 1139: Use of Artificial Intelligence in Health Care

  • Enacted

    HB 25-1182: Risk Model Use in Property Insurance Policies

    Insurers using wildfire risk models or catastrophe models must submit these models to the Commissioner with descriptions, rate impacts, actuarial justifications, and underwriting explanations. Insurers must incorporate property-specific and community-level mitigation actions into models or provide discounts. Insurers must provide policyholders written notice of wildfire risk scores and appeal rights within specified timeframes.

Georgia

  • Enacted

    SB 444: Private Review Agents; certain decisions with regard to the provision of insurance coverage for healthcare services shall not be based solely on artificial intelligence systems; provide

    Private review agents and utilization review entities must not issue adverse determinations based solely on artificial intelligence systems, artificial intelligence, or other software tools. A natural person qualifying as a private review agent or utilization review entity must conduct utilization review with clinical peer participation before any adverse determination, and such systems shall not supersede the clinical peer's judgment.

    Takes effect 1 January 2027

Iowa

  • Enacted

    HF 2635: A bill for an act relating to health carriers standards of conduct; utilization review organizations, artificial intelligence, audits, and prior authorizations; certificate of need processes; and including applicability provisions.

Louisiana

  • Enacted

    SB 61: INSURANCE RATES: Provides for the use of credit information in underwriting or rating of certain personal insurance policies. (8/1/25)

    Insurers must provide consumers a copy of credit information obtained by the insurer in connection with the initial application or any subsequent renewal policy. The act also requires insurers to provide consumers with credit information obtained and to provide for adverse action.

    Took effect 1 July 2026

Maine

  • Enacted

    LD 1906: An Act To Improve Accountability And Understanding Of Data In Insurance Transactions

    Administrators and pharmacy benefits managers must provide plan sponsors with claims data within 20 business days of request, including high-cost claims data before payment and post-payment audit data at least once yearly. Plan sponsors own claims data. Administrators and pharmacy benefits managers cannot impose audit fees exceeding direct expenses or restrict audit scope. These requirements apply to contracts entered into, issued, amended, or renewed on or after January 1, 2026.

Maryland

  • Enacted

    HB 820: Health Insurance - Utilization Review - Use of Artificial Intelligence

    Carriers, pharmacy benefits managers, and private review agents using artificial intelligence, algorithms, or software tools for utilization review must ensure these tools base determinations on individual enrollee medical history and clinical circumstances rather than group datasets alone, do not replace healthcare provider roles, do not discriminate, are fairly applied, undergo quarterly performance reviews, and cannot deny, delay, or modify health care services. Carriers must report quarterly whether artificial intelligence was used in adverse decisions.

    Took effect 1 October 2025

  • Enacted

    HB 1007: Disability and Life Insurance - Medical Information (Genetic Testing Protection Act)

    Insurance carriers offering life, long-term care, or disability insurance in Maryland may not unfairly discriminate based on medical information lacking actuarially sound relationship to insurance risk. Carriers may not access sensitive medical information or genetic data without written consent, mandate genetic testing or genome sequencing, or use genetic test results to deny, limit, cancel, or affect coverage.

    Took effect 1 October 2025

Michigan

  • Enacted

    SB 1013: Insurance: no-fault; price optimization use in determining insurance rates; prohibit. Adds sec. 2027a of 1956 PA 218 (MCL 500.2027a).

    Insurers must not establish rates for automobile or home insurance through price optimization or allow rates to be impacted by price optimization. Insurers must not establish underwriting rules through price optimization. Price optimization includes charging the highest price the market will bear, considering likelihood of policy turnover, estimating willingness to pay, or using price elasticity measures.

Texas

  • Enacted

    SB 1644: Relating to the use of a consumer's credit score in the underwriting or rating of certain personal lines property and casualty insurance policies.

    Insurers using credit scoring in personal lines property and casualty insurance underwriting or rating must provide adverse action notice within 30 days including consumer reporting agency contact information and rights to obtain free credit reports and dispute inaccuracies. Insurers must review and update insured credit reports at least every 36 months, reassess policy ratings, and allow insureds to request re-underwriting and re-rating once per 12-month period based on current credit reports.

    Took effect 1 September 2025

  • Enacted

    SB 815: Relating to the use of certain automated systems in, and certain adverse determinations made in connection with, the health benefit claims process.

    Utilization review agents may not use automated decision systems to suggest, recommend, generate, or assist in making adverse determinations; only appropriate physicians, dentists, or other licensed health care providers may make adverse determinations. Health maintenance organizations and insurers must disclose in written explanations of benefits whether artificial intelligence was used in the claims process and describe the method if applicable.

    Took effect 1 September 2025

Virginia

  • Enacted

    SB 693: Motor vehicle insurance; unfair discrimination based on individual's consumer credit info., report.

    No person shall refuse to insure, refuse to continue to insure, or limit the amount or extent of motor vehicle insurance coverage, or charge an individual a different rate for the same motor vehicle insurance coverage, solely because of such individual's consumer credit information or credit-based insurance score. The State Corporation Commission's Bureau of Insurance shall study insurers' use of consumer credit information or credit-based insurance scores in motor vehicle insurance underwriting and submit findings and recommendations by October 1, 2026.

Bills that moved most recently

The 25 open AI and data in underwriting and claims bills with the latest action. The Insurance Tracker follows all 176.

  • New Hampshire HB 359: prohibiting denial of banking and insurance services based on any factor that is not quantitative, impartial, and risk-based as measured by an objective standard.

    What it would do: Prohibits financial institutions and insurers from denying or canceling services based on political opinions, religious beliefs, firearm ownership, fossil fuel engagement, immigration enforcement support, environmental or social governance standards, or diversity programs, unless decisions are quantitative, impartial, and risk-based.

    In committee

  • Pennsylvania HB 1925: An Act amending Titles 35 (Health and Safety), 40 (Insurance) and 67 (Public Welfare) of the Pennsylvania Consolidated Statutes, 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.

    What it would do: Requires health care facilities, insurers, and MA/CHIP managed care plans to disclose artificial intelligence use in clinical decision-making and utilization review, establish compliance policies, file annual compliance statements, and prohibits AI from superseding human clinical judgment. Imposes civil penalties up to $10,000 per knowing violation and $250,000 annually per entity.

    Passed chamber

  • Michigan HB 6337: Insurance: insurers; use of genetic information in life insurance policies; prohibit. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 4003.

    In committee

  • New York A 11724: Requires property/casualty insurance carriers to provide access to underwriting models or granular claim data to the department of financial services

    In committee

  • New York A 11725: Relates to prohibiting the consideration of credit history in the underwriting, cancellation, renewal or calculation of cost of homeowners' insurance

    In committee

  • New Jersey A 5494: Prohibits certain use of artificial intelligence in denying homeowner, automobile, and flood insurance claims.

    In committee

  • Virginia SB 586: Health carriers; use of artificial intelligence, disclosures.

    What it would do: Requires health carriers to disclose AI use in claims and coverage decisions, prohibits relying exclusively on AI to deny coverage, mandates human physician review of adverse determinations, and allows covered persons expedited external review and private right of action with civil penalties up to $50,000 per violation.

    Passed chamber

  • Massachusetts S 3046: An Act establishing a commission to investigate auto insurance discrimination

    Passed committee

  • California AB 1559: Residential property insurance images.

    Passed chamber

  • Rhode Island SB 2010: An act relating to insurance -- the transparency and accountability in artificial intelligence use by health insurers to manage coverage and claims act

    What it would do: Requires health insurers to disclose artificial intelligence use in claims and coverage decisions to state regulators, maintain documentation for five years, and obtain provider approval before finalizing AI-driven denials of medically necessary care.

    Passed chamber

  • New York S 1169: Relates to the development and use of certain artificial intelligence systems

    What it would do: Creates comprehensive AI regulation requiring developers and deployers of high-risk AI systems to prevent algorithmic discrimination, conduct audits, file reports, maintain risk management programs, provide transparency to users, and enable appeals with meaningful human review.

    Passed chamber

  • Louisiana SB 246: HEALTH/ACC INSURANCE: Establishes requirements for health insurance issuers using artificial intelligence or automated decision systems. (8/1/26)

    Passed committee

  • Missouri HB 2632: Prohibits an insurer from utilizing information from a credit reporting agency or insurance credit scores from consumer reporting agency in determining certain insurance rates

    In committee

  • New Jersey A 5096: Prohibits insurers from using credit history when evaluating homeowners insurance policies.

    In committee

  • South Carolina S 920: Health insurance

    What it would do: Requires health insurers using artificial intelligence for prior authorization decisions to base determinations on enrollees' medical history and clinical circumstances, obtain annual departmental certification of compliance, and ensure a licensed physician makes final denial decisions. Mandates disclosure to enrollees and establishes Department of Insurance enforcement authority.

    Passed committee

  • North Carolina HB 1161: Omnibus Artificial Intelligence Protections.

    What it would do: Prohibits artificial intelligence use in political advertisements with criminal penalties and campaign restrictions. Allows schools to restrict student AI use, requires AI instruction in middle and higher education, mandates bias audits and disclosure for employer hiring algorithms, prohibits insurers from using AI as primary claim processing method, and restricts generative AI use in court filings.

    In committee

  • New York S 2398: Requires genetic testing results only be received by patients and health care providers providing direct care while health insurance companies only receive a record that the genetic testing was performed

    What it would do: Prohibits health insurers and life insurers from receiving genetic test results and requires them to accept only confirmation that testing was performed. Allows only patients and their direct care providers to receive actual genetic test results.

    Passed chamber

  • New York A 11069: Relates to the use of aerial images for the purposes of homeowners' insurance

    In committee

  • Missouri HB 2324: Creates provisions relating to the procurement of driving data by automobile insurers

    What it would do: Prohibits automobile insurers from purchasing driving data about insured vehicles without express written consent from the vehicle owner or primary driver, and requires insurers to provide disclosures about data collection and prohibits denying coverage or increasing premiums solely for refusing to provide such data.

    In committee

  • Minnesota HF 3701: Long-term care, life, and disability insurers prohibited from using genetic information for certain purposes.

    What it would do: Prohibits long-term care, life, and disability insurers from denying coverage, canceling policies, or setting premium rates based on genetic information, and from requiring genetic testing as a condition of coverage. Allows use of existing genetic information in medical records with prior written consent.

    In committee

  • New York A 10732: Prohibits insurers from using violations committed by child care providers as the basis for rate adjustments

    In committee

  • Maryland SB 351: Private Passenger Motor Vehicle Insurance - Use of Programs That Measure the Operation of an Insured Vehicle

    What it would do: Requires insurers to disclose use of vehicle operation monitoring programs to applicants and policyholders, establish data correction/appeal processes, and prohibits using such data to cancel, refuse renewal, or refuse underwriting. Prohibits premium increases within 6 months of policy inception.

    Passed chamber

  • New Mexico HB 204: Wildfire risk insurance models & underwriting

    What it would do: Requires homeowners insurers to submit wildfire risk models to the superintendent, incorporate property-specific and community-level mitigation factors into underwriting, provide mitigation discounts, and give policyholders written notice of wildfire risk scores with appeal rights.

    Introduced

  • Connecticut HB 5264: An act concerning service animals in insurance underwriting, the appointment of an advocate in proceedings concerning the welfare or custody of companion animals, assault of a domestic animal and establishing an animal abuse task force.

    What it would do: Prohibits insurers from canceling or refusing homeowners or tenants policies based on service or therapy animal ownership, expands animal cruelty to a class D felony, allows courts to appoint advocates in animal welfare proceedings, and establishes a task force to study animal abuse registries and pretrial rehabilitation restrictions.

    Passed committee

  • Michigan HB 4536: Insurance: health insurers; use of artificial intelligence tools to make decisions regarding claims; prohibit. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 3406ss.

    In committee

AI and data in underwriting and claims laws, state by state

Questions

Which states have AI and data in underwriting and claims laws?

States that enacted AI and data in underwriting and claims laws in 2025 and 2026: California (2), Colorado (2), Maryland (2), Texas (2), Alabama (1), Arizona (1), Georgia (1), Iowa (1), Louisiana (1), Maine (1), Michigan (1) and Virginia (1). Laws enacted before 2025 are not listed here.

Which states have the most AI and data in underwriting and claims bills?

New York (18), Connecticut (11), Texas (11), Maryland (9) and New Jersey (8). In all, 176 bills in 43 jurisdictions, the latest action on 15 October 2026.

What do AI and data in underwriting and claims bills cover?

Artificial intelligence, algorithms, credit scores and external consumer data used to price, underwrite or decide claims. Each enacted law above has a line on what it requires.

Is this legal advice?

No. Which bills count as AI and data in underwriting and claims bills, and the line on what each law requires or each bill would do, are drafted by software and not reviewed by an attorney. Every bill links to the legislature’s own record: read the text before relying on it. The list covers bills from the 2025 and 2026 sessions.

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