Colorado - SB 21-169 Protecting Consumers from Unfair Discrimination in Insurance Practices (2021)

Enacted in July 2021 and codified at C.R.S. 10-3-1104.9, SB 21-169 addresses the use of external consumer data and information sources, algorithms and predictive models by insurers in Colorado. It prohibits insurers from using such tools in a way that unfairly discriminates against consumers on the basis of race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity or gender expression, and directs the Division of Insurance to adopt rules by insurance type and practice.

The first implementing regulation, effective 14 November 2023, establishes a governance and risk-management framework for life insurers' use of external consumer data and information sources, algorithms and predictive models. Life insurers must maintain board and senior-management oversight, a documented risk-management framework, an inventory of models and data sources, ongoing testing, and annual reporting and attestation to the Division. Additional quantitative testing requirements for life underwriting have been developed. Enforcement is through the Division of Insurance under Colorado's insurance code.