Colorado Protecting Consumers from Unfair Discrimination in Insurance Practices

Jurisdiction:

Colorado

enforcing

Effective:

Jul 6, 2021

Authority:

Colorado Division of Insurance

Official text Verified Mar 27, 2026

Obligations Covered

Bias & Discrimination Prevention Risk Assessment

Provisions (2)

Prohibition on Algorithmic Discrimination in Insurance #

Obligation:

Bias Prevention

enforcing

Effective:

Jul 6, 2021

Risk tier:

high-risk

Scope:

deployers

sleeper

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 #

Obligation:

Risk Assessment

enforcing

Effective:

Jul 6, 2021

Risk tier:

high-risk

Scope:

deployers

sleeper

Commissioner rules require governance and testing frameworks for algorithmic models used in insurance underwriting and claims.

Requirements

Requirement	Details
Governance framework	Insurers must adopt governance framework for algorithms and predictive models
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