In one paragraph
Colorado SB 21-169 bars insurers from unfairly discriminating based on race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity or gender expression in any insurance practice, and from using external consumer data and information sources, algorithms or predictive models that unfairly discriminate. An algorithm is a computational or machine learning process that informs human decision making in insurance practices. Commissioner rules, effective no earlier than 2023, require insurers to disclose data sources, maintain a risk-management framework, test outcomes and file attestations. Title insurance, surety and most commercial lines are exempt.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
Insurers in Colorado must govern and test algorithms, predictive models and external consumer data for unfair discrimination under Division of Insurance rules.
Key provisions
- C.R.S. 10-3-1104.9: insurers may not use external consumer data, algorithms or predictive models that unfairly discriminate against protected classes
- 'Algorithm': a computational or machine learning process that informs human decision making in insurance practices
- Covers marketing, underwriting, pricing, utilization management, reimbursement and claims
- Commissioner rules after stakeholder process: data-source disclosure, risk-management framework, outcome testing, officer attestation
- Rules may not take effect before January 1, 2023; commissioner may examine and investigate insurers
- Exempts title insurance, surety bonds and commercial policies (with a stated exception)
Latest legislative action
Jul 6, 2021. Governor Signed; Session Laws 2021, ch. 436
Topics and industries
Related topics
Affected industries
This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error