Colorado Protecting Consumers from Unfair Discrimination in Insurance Practices — Risk Assessment

Yes. Colorado Protecting Consumers from Unfair Discrimination in Insurance Practices addresses Risk Assessment through 1 provision.

Does Colorado Protecting Consumers from Unfair Discrimination in Insurance Practices require Risk Assessment?

Colorado • enforcing

Yes — 1 provision

This regulation imposes 3 specific requirements for Risk Assessment across 1 provision:

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

Obligation:

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.

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

Violation	Fine
Per violation	Up to $3,000; up to $30,000 per knowing violation