Financial Institutions and Insurers; using social credit score to discriminate prohibited; violations of insurers an unfair trade practice; fines, penalties and remedies authorized

HB 418, the Equality in Financial Services Act, prohibits Alabama financial institutions and insurers from denying services based on a "social credit score" - defined to include factors like religious exercise, speech, firearm ownership, refusal to conduct diversity audits, or opposition to certain government policies. It allows institutions to claim a religious exemption when making service decisions but bans using nonquantifiable or biased factors for discrimination. The Alabama State Banking Department and Department of Insurance would enforce the law and impose penalties for violations. The bill is currently pending committee review after its first reading on March 6, 2025.