Insight
TDI Bulletin B-0003-26 on Insurers’ Use of AI
The Texas Department of Insurance expects human review of consequential AI-supported decisions and governance of AI systems.
Law checked through
On June 12, 2026, the Texas Department of Insurance issued Commissioner’s Bulletin B-0003-26 on insurers’ use of artificial intelligence. It states that decisions made or supported by AI must comply with all applicable insurance laws, including those on claims handling (Insurance Code chapter 542), unfair practices (chapter 541) and unfair discrimination (chapter 544); that such decisions may not be inaccurate, arbitrary, capricious or unfairly discriminatory; and that for consequential decisions, such as claim denials, estimate reductions, fraud flags, payment delays and coverage determinations, a person should review and agree with the decision before action is taken. It expects governance, risk management, testing and audit functions and notes adjuster licensing requirements under chapter 4101.
A bulletin states the Department’s interpretation and expectations; it is not a statute or rule. Read it alongside SB 815, which bars automated adverse determinations in utilization review, and TRAIGA, which leaves the regulation of insurance to the Department.