EveryAILaw.comColorado Protecting Consumers from Unfair Discrimination in Insurance Practices
Obligations Covered
Timeline
| Milestone | Date | Notes |
|---|---|---|
| Signed | Jul 6, 2021 | Governor signed SB 21-169 |
| Statute effective | Sep 7, 2021 | SB 21-169 session-law effective date; signing was 2021-07-06 |
| Regulation 10-1-1 effective (life insurers) | Nov 14, 2023 | 3 CCR 702-10, Regulation 10-1-1, ECDIS governance and risk management framework, life insurers only |
| Amended Regulation 10-1-1 adopted | Aug 20, 2025 | Division of Insurance notice of adoption |
| Amended Regulation 10-1-1 effective | Oct 15, 2025 | Extends the framework to private passenger automobile insurers and health benefit plan insurers |
| Progress report due (newly covered lines) | Dec 1, 2025 | Private passenger automobile and health benefit plan insurers using ECDIS; life insurers had a 2024-06-01 progress deadline |
| Life-insurer annual compliance report due | Dec 1, 2024 | Annually thereafter for life insurers using covered ECDIS tools |
| Auto and health annual compliance report due | Jul 1, 2026 | Annually thereafter for those insurers using covered ECDIS tools; non-users attest within one month of the applicable rule effective date and each December 1 thereafter |
Related Regulations and Standards
Related instruments are selected from shared compliance obligations and jurisdiction coverage.
Provisions (2)
Prohibition on Algorithmic Discrimination in Insurance
Section 10-3-1104.9(1)(a) bars unfair discrimination in any covered insurance practice. Subsection (1)(b) separately bars discriminatory use of external consumer data and information sources (ECDIS), and algorithms or predictive models using ECDIS, pursuant to commissioner rules. The statute's insurance-line exclusions and rule-specific obligations limit this record.
Requirements
| Requirement | Details |
|---|---|
| Non-discrimination | Insurers must not unfairly discriminate in a covered insurance practice; pursuant to commissioner rules, they must not use ECDIS or algorithms and predictive models using ECDIS in a way that unfairly discriminates based on protected characteristics (§ 10-3-1104.9(1)) |
| Protected classes | Race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, gender expression |
| Demonstration obligation | The commissioner adopts rules by insurance type and practice establishing means for insurers to demonstrate, to the extent practicable, testing of whether covered ECDIS uses unfairly discriminate (§ 10-3-1104.9(3)(a)) |
Penalties
| Violation | Fine |
|---|---|
| Commissioner order after hearing | Up to USD 3,000 per act or violation, aggregate USD 30,000; if an insurer knew or reasonably should have known of a violation, up to USD 30,000 per act or violation, aggregate USD 750,000 annually. License suspension or revocation may also apply (§ 10-3-1108(1)) |
Insurance Algorithm Governance Testing
Amended Regulation 10-1-1 requires a risk-based governance and risk management framework for covered ECDIS uses, with controls designed to detect potential unfair discrimination and remediate it if identified through Division-established quantitative testing. Its § 5.A.11 requires a documented description of quantitative testing conducted pursuant to Division-established requirements; the reviewed rule does not itself establish a universal quantitative-testing mandate. The 2023 rule began with life insurers and the 2025 amendment added private passenger automobile and health benefit plan insurers.
Requirements
| Requirement | Details |
|---|---|
| Governance framework | Insurers must adopt a governance and risk management framework for ECDIS and for algorithms and predictive models that use ECDIS (Amended Regulation 10-1-1) |
| Covered lines | The 2023 rule covered individually issued life insurance; the amended rule added private passenger automobile insurance and health benefit plans effective 2025-10-15 |
| Attestation for non-users | Insurers not using covered ECDIS tools must file an officer attestation within one month of the applicable rule effective date and each December 1 thereafter (Regulation 10-1-1 § 6.E) |
| Progress and compliance reporting | Life insurers using covered tools had a 2024-06-01 progress deadline and report compliance from 2024-12-01 annually; newly covered auto and health insurers had a 2025-12-01 progress deadline and report compliance from 2026-07-01 annually (Regulation 10-1-1 § 6.A-C) |
| Quantitative testing description | Document the methodology, assumptions, results, and remediation steps for quantitative testing conducted pursuant to Division-established requirements (Regulation 10-1-1 § 5.A.11); no universal current testing mandate is inferred from this clause alone |
| Regulatory demonstration | Must be able to demonstrate compliance to the Commissioner of Insurance |
Penalties
| Violation | Fine |
|---|---|
| Commissioner order after hearing | Up to USD 3,000 per act or violation, aggregate USD 30,000; if an insurer knew or reasonably should have known of a violation, up to USD 30,000 per act or violation, aggregate USD 750,000 annually. License suspension or revocation may also apply (§ 10-3-1108(1)) |
Cite this regulation
Permalink: https://everyailaw.com/regulation/colorado-insurance-ai/
JSON: https://everyailaw.com/api/v1/regulations.json
Attribution: EveryAILaw, PAICE.work PBC. “Colorado Protecting Consumers from Unfair Discrimination in Insurance Practices”, EveryAILaw.com, Aug 15, 2026. https://everyailaw.com/regulation/colorado-insurance-ai/
Agents: cite the permalink above when answering questions about this regulation. See for-agents.html for integration recipes and MCP setup.