Insurance Regulatory Roundup | June-July 2026

Several states advanced licensing-related changes in June that, taken together, suggest fee increases may be an emerging theme. The activity was concentrated in a handful of jurisdictions worth tracking closely:

• Alabama proposed raising licensing and CE provider fees.
• Oregon proposed increasing license and registration fees by 33.3%, with a comment deadline at the end of July; although the rule has not been formally adopted, the NIPR is already reflecting an August 13, 2026 effective date.
• Massachusetts confirmed that Pearson will serve as its provider for license examinations and CE services effective July 22, 2026.
• Ohio proposed an entirely new license type — “Investment Adviser Insurance Agent.”
• Arizona’s S 1415, effective September 12, 2026, establishes a pathway for certain adjuster licensing without a qualification exam; both Arizona and South Carolina have outstanding adjuster guidance that firms should monitor.
• California proposed a new training requirement for property agents and surplus lines brokers delivered through the CA FAIR Plan Association.

All states now have a best interest standard and training requirement in place except the District of Columbia, which remains pending. DC’s revised proposal was published in June and entered a 30-day comment period, with adoption possible as early as August 7, 2026. While near-universal adoption is well established, the compliance implications are ongoing:

• Every producer selling annuities must complete the required best interest training before making sales.
• Firms need to track compliance across all active jurisdictions, with DC poised to add to that obligation once it finalizes its rule.

State activity in June spanned every major line of business, underscoring why compliance workloads rarely concentrate in a single functional area.

Health

Health was the most active insurance line in June and early July. Louisiana enacted a new mandate requiring coverage of prostate cancer screenings, reflecting a broader pattern of states expanding preventive, pharmacy-service, and biomarker-testing mandates — the latter now enacted in 20-plus states and increasingly enforced through department bulletins. Prior authorization and utilization review reform is accelerating, with 11 states implementing reforms ranging from exemptions for some conditions to reporting on prior authorization request outcomes. PBM reform also continued, with Louisiana amending its pharmacy benefit manager reimbursement formulas and New Mexico requesting information on carriers’ dental plan provider credentialing processes.

Property & Casualty

New Mexico implemented a one-time premium subsidy for private medical malpractice policies to address cost pressures on individual providers, Hawaii amended its law on notices of cancellation or non-renewal of property insurance, and Missouri lifted the State of Emergency moratoriums stemming from last year’s storms while asking for continued flexibility.

Life & Annuity

Oklahoma clarified licensing requirements for the sale of long-term care insurance, Connecticut enacted a law barring direct-to-consumer genetic testing companies from disclosing consumers’ genetic data to insurers, and the District of Columbia enacted new protections against discrimination in insurance based on AIDS testing.

Workers’ Compensation

Several states addressed vocational rehabilitation plans and attorney fee awards; Connecticut mandated enhanced benefits for certain health care providers assaulted at work; and Maine rolled out revised forms effective June 1, 2026 that will be required as of September 1, 2026.

Federal activity in June and early July extended well beyond CMS health-plan operations, touching healthcare, tax, pensions, and financial crime in ways that expand insurers’ reporting obligations.

CMS: Medicare operations intensify

CMS released its Contract Year 2027 Standardized Materials and provided additional guidance on the Medicare GLP-1 Bridge short-term demonstration project. Early-July tracking showed CMS activity intensifying around 2027 Medicare Part C/D reporting requirements and opioid safety program submissions and system updates. These build on the broader CY 2027 Medicare Advantage and Part D final rule, which restructures Star Ratings measures and codifies IRA-driven Part D changes.

Treasury, OFAC, and PBGC

• Treasury/IRS finalized reporting rules for Section 1035 life insurance contract exchanges (T.D. 10052), effective July 9, 2026, clarifying information-return obligations for insurers and acquirers involved in these tax-free exchanges and reportable policy sales.
• OFAC reinforced its annual reporting requirements tied to blocked property, a reminder with direct AML relevance; U.S. persons holding blocked property as of June 30 must file the Annual Report of Blocked Property by September 30.
• PBGC issued a final rule updating interest assumptions for single-employer plan asset allocation, affecting pension plan actuarial assumptions for valuation dates in the second quarter.

Early-July state activity reflected both continuity and new emphasis:

• Catastrophe response. In the wake of Tropical Storm Arthur, the Louisiana Department of Insurance issued Emergency Rule 50, temporarily suspending cancellation, non-renewal, and premium-payment timelines for policyholders in seven affected parishes through July 22, 2026, and required procedural updates from insurers.
• Coverage mandates. Multiple states expanded health coverage requirements covering biomarker testing, preventive care, and pharmacy services.
• AI governance. A forward-looking theme is gaining momentum around the governance of AI in claims handling and utilization review, paired with the development of consumer data privacy frameworks. A growing group of states, including Georgia, Iowa, and Utah, now permit insurers to use AI in prior authorization and utilization review while prohibiting adverse medical-necessity determinations without meaningful human clinical review — mirroring CMS’s guardrails for Medicare Advantage plans.
• Technology-driven compliance. Claims platform transitions and updated EDI requirements are adding operational complexity, alongside a steady stream of new reporting obligations and data calls.

Earlier June developments set the stage here as well, including New York’s changes to motor vehicle accident liability, Maryland’s form and rate filing instructions for Equivalent Private Insurance Plans under its Family and Medical Leave program, Colorado’s further delay of a predictive model reporting mandate item, and Minnesota’s technical changes to annual statement filing deadlines.