Paige Waters

Regulatory Activity Bulletin 2026-07ALABAMA DEPARTMENT OF INSURANCEBULLETIN 2026-07TO: All insurers engaged in providing health insurance in AlabamaFROM: Mark FowlerAlabama Commissioner of InsuranceRE: Ala. Act 2026-589 [imposition of limitations on use of artificial intelligence by health benefit plan providers in making determinations of coverage under health benefit plans]DATE: October 1, 2026EFFECTIVE: ImmediateThis Bulletin alerts all entities affected about the Alabama Legislature's passage of Ala. Act No. 2026-589 on April 8, 2026, and the Governor's approval of that act on April 16, 2026 [the "Act"]. The Act becomes effective on October 1, 2026. It imposes limitations on the use of artificial intelligence by health benefit plan providers in making determinations of coverage under health benefit plans and authorizes the Department of Insurance to investigate and impose disciplinary action for violations. The Department believes that this Act will be codified as Ala. Code § 27-1-17.2 though final placement in the Code of Alabama is subject to editorial action by the Code Commissioner. The act defines "health benefit plan provider" in § 1(a)(6). Some types of plans providing health-type benefits or insurance are excluded under the definition of "health benefit plan" in § 1(a)(5)b.All affected entities are strongly encouraged to review Act No. 2026-589 and conform future actions to any applicable requirements imposed by the act. The Act can be viewed at the Alabama Secretary of State's website [sos.alabama.gov-records/legislative acts].The first annual certification to the Department of Insurance required under Act §l (b)(2) shall be due on or before May 31, 2027, and should be made through SERFFSM ["System for Electronic Rates and Forms Filing"].Act § 1(c)(l) requires that affected health plan providers" must "[m]ake prominent written disclosure regarding its use of artificial intelligence in utilization in its policies and procedures." This "prominent written disclosure" shall be made on the face page of the insurance or plan contract on or before January 1, 2027, and any necessary form filings made on or before that date through SERFFSM.#AI