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 |
| Effective | Jul 6, 2021 | In effect |
| Regulation 10-1-1 effective (life insurers) | Nov 14, 2023 | 3 CCR 702-10-1-1, 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 | Insurers using ECDIS report progress toward compliance; non-users file an annual officer attestation |
| Annual compliance report due | Jul 1, 2026 | Annually thereafter |
Related Regulations and Standards
Related instruments are selected from shared compliance obligations and jurisdiction coverage.
Provisions (2)
Prohibition on Algorithmic Discrimination in Insurance #
Predates most US AI laws; sector-specific but establishes an early template for algorithmic discrimination regulation. Insurance industry must proactively demonstrate non-discrimination.
Requirements
| Requirement | Details |
|---|---|
| Non-discrimination | Insurers must not use algorithms or predictive models that unfairly discriminate based on protected characteristics |
| Protected classes | Race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, gender expression |
| Demonstration obligation | Commissioner may require insurers to demonstrate their algorithms do not result in unfair discrimination |
Penalties
| Violation | Fine |
|---|---|
| Per violation | Up to $3,000; up to $30,000 per knowing violation |
Insurance Algorithm Governance Testing #
Commissioner rules require governance and testing frameworks for algorithmic models used in insurance underwriting and claims.
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 | Life insurance, private passenger automobile insurance, and health benefit plans, effective 2025-10-15; the 2023 version covered life insurers only |
| Attestation for non-users | Insurers not using ECDIS or ECDIS-based algorithms or predictive models must file an annual officer attestation to that effect |
| Progress and compliance reporting | Insurers using covered tools filed a progress report by 2025-12-01 and file an annual compliance report from 2026-07-01 |
| Testing for discrimination | Must test algorithms for unfair discrimination based on protected characteristics |
| Regulatory demonstration | Must be able to demonstrate compliance to the Commissioner of Insurance |
Penalties
| Violation | Fine |
|---|---|
| Per violation | Up to $3,000; up to $30,000 per knowing violation |
Cite this regulation
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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/
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