ALASKA - As Alaska moves into 2026, several significant legislative updates will take effect on January 1. These changes primarily focus on modernizing state insurance regulations, enhancing data security, and finalizing the implementation of "T-21" tobacco laws.
Here are five of the most impactful new laws and regulations taking effect in the Last Frontier this January.
1. Omnibus Insurance Reform (SB 132)
Senate Bill 132 introduces sweeping changes to how insurance-related services are managed in Alaska. One of the most visible impacts for consumers involves vehicle service contracts and other third-party warranties.
- Pre-Approval Mandate: Starting January 1, the Alaska Division of Insurance is required to pre-approve all service contracts before they can be sold in the state.
- Consumer Protection: This change is designed to ensure that aftermarket products (such as extended auto warranties) comply with state standards, thereby protecting Alaskans from predatory or vaguely worded contracts.
2. Licensing for Pharmacy Benefit Managers (SB 132)
Another significant component of the insurance omnibus bill focuses on the "middlemen" of the healthcare industry. Pharmacy Benefit Managers (PBMs) and Third-Party Administrators (TPAs) face a new regulatory landscape this January.
- Licensure Requirement: Previously subject only to registration, PBMs must now obtain a formal license to operate in Alaska.
- Increased Oversight: The law grants the state expanded authority to examine these entities' financial and operational records, aiming for greater transparency in how prescription drug prices are managed for Alaskan patients.
3. Insurance Data Security Standards (SB 134)
Following a phased rollout that began in 2025, a critical deadline for Senate Bill 134 arrives on January 1. This law establishes rigorous cybersecurity standards for the insurance industry.
- Cybersecurity Audits: Starting this year, insurers and licensed agents must conduct regular risk assessments and maintain a comprehensive written information security program.
- Notification Rules: The law mandates strict protocols for investigating and reporting cybersecurity events, ensuring that Alaskan policyholders are notified promptly if their nonpublic personal information is compromised.
4. Final Phases of "T-21" Tobacco Compliance (SB 24)
While the shift to a minimum age of 21 for purchasing tobacco and nicotine products began in previous years, Senate Bill 24 introduces final administrative and enforcement milestones on January 1, 2026.
- E-Cigarette Regulation: The law tightens the definitions for electronic smoking products and establishes specific tax reporting requirements for retailers.
- Retailer Liability: New penalties for retailers that fail to verify age take effect, aligningAlaska'ss state enforcement with federal "T-21" standards.
5. Modernized Adjuster Reciprocity (SB 132)
For those working in the insurance industry, SB 132 streamlines the process for Independent Adjusters to work within the state.
- Starting January 1, Alaska will allow reciprocal licensing for nonresident adjusters, making it easier for out-of-state professionals to assist in Alaska following natural disasters or large-scale claims events.
- Home State Designation: Adjusters living in states that do not issue licenses can now designate Alaska as their "home state" for licensing purposes, simplifying multi-state compliance.
A Note on the Alaska Minimum Wage
Alaskans should note that the State minimum wage will not increase on January 1 this year. Following the passage of Ballot Measure 1 in 2024, the state has shifted its wage adjustments to a mid-year schedule. The subsequent increase—bringing the minimum wage to $14.00 per hour—is scheduled for July 1, 2026.
