CO Insurance Algorithmic Discrimination Law
Protecting Consumers from Unfair Discrimination in Insurance Practices
Colorado · Colo. Rev. Stat. Sec. 10-3-1104.9 (SB 21-169)
- Status
- In effect
- Took effect
- July 6, 2021
- Applies to
- Insurers operating in Colorado that use external consumer data and information sources, algorithms, or predictive models.
- Enforced by
- Colorado Division of Insurance / Commissioner of Insurance
Colorado prohibits insurers from using outside consumer data, algorithms, or predictive models in ways that unfairly discriminate against people based on protected characteristics such as race, sex, religion, sexual orientation, disability, or gender identity. The law directs the state Insurance Commissioner to write rules that require insurers to test their data and models and show they do not produce discriminatory outcomes. Insurers must also maintain a risk-management framework to monitor for unfair discrimination. Coverage was later expanded to additional lines such as private passenger auto and health benefit plans.
Who is protected: Colorado insurance consumers who could be subject to unfair discrimination on protected characteristics through insurers' data, algorithms, or predictive models.
Legal detail
Colo. Rev. Stat. 10-3-1104.9 bars insurers' use of external consumer data sources, algorithms, and predictive models that unfairly discriminate on protected classes, and requires the Commissioner of Insurance to adopt rules establishing how insurers demonstrate their models are tested and non-discriminatory.
Key facts
| Jurisdiction | Colorado |
|---|---|
| Level | State |
| Strength | Limited |
| Enacted | July 6, 2021 |
| Citation | Colo. Rev. Stat. Sec. 10-3-1104.9 (SB 21-169) |
| Private right of action | No, agency enforcement only |
| Penalties | Enforced through the Commissioner's general powers under Colo. Rev. Stat. 10-3-1108: civil penalties of up to $3,000 per act (capped at $30,000 in aggregate) for non-knowing violations, and up to $30,000 per act (capped at $150,000 in aggregate) for knowing violations, plus possible license suspension or revocation. |
| Topics | insurance AI · automated decision-making · consumer protection |
| Statute | Colorado Revised Statutes 10-3-1104.9 - Insurers' use of external consumer data and information sources, algorithms, and predictive models - unfair discrimination prohibited |
More AI rules in Colorado
- CO SB 17-213 (AV statute) · In effect
- Colorado Privacy Act (CPA) · In effect
- CO Candidate Deepfake Disclosure Law · In effect
- CO Intimate Digital Depictions Act (SB25-288) · In effect
- Colorado AI Act (repealed) · Repealed / replaced
- SB 26-189 (Colorado ADMT Law) · Enacted (not yet in effect)
Related insurance AI rules elsewhere
- NYDFS CL 7 (2024) — Insurance AI Anti-Discrimination · In effect
- NAIC AI Evaluation Tool Pilot (12 states, 2026) · Proposed / pending
- AZ HB 2175 (AI Insurance Denial — Physician Review) · In effect
- TX TDI Bulletin B-0003-26 (AI in insurance) · In effect
- Illinois SB 3114 — Transparency in Downcoding Act · Enacted (not yet in effect)
- PA AG — GEICO AI Underwriting Settlement · In effect
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