EveryAILaw.comDoes Colorado Protecting Consumers from Unfair Discrimination in Insurance Practices require Risk Assessment?
Colorado • enforcing
Yes — 1 provision
Requirements at a glance
This regulation imposes 6 specific requirements for Risk Assessment across 1 provision:
- 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
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)) |