SB21-169 - Protecting Consumers from Unfair Discrimination in Insurance Practices
On July 6, 2021, Governor Polis signed Senate Bill (SB) 21-169 into law, which protects Colorado consumers from insurance practices that result in unfair discrimination on the basis of race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identify, or gender expression. The legislation holds insurers accountable for testing their big data systems - including external consumer data and information sources, algorithms, and predictive models - to ensure they are not unfairly discriminating against consumers on the basis of a protected class. SB21-169 requires insurers to take corrective action to address any consumer harms that are discovered.
The rapid expansion of big data has transformed insurance practices. While these tools have the potential to benefit both insurers and consumers by increasing efficiencies, the unchecked use of big data can unintentionally result in harm to Black, indigenous and people of color and other protected groups. SB21-169 requires insurers to demonstrate to the Division of Insurance (Division) how they are testing their data and tools to ensure they do not result in unfair discrimination.
Stakeholder Engagement Process
SB21-169 directs the Insurance Commissioner to work with stakeholders (insurance companies, insurance agents/producers, consumer representatives, and other interested parties) before adopting rules on how the companies should test and demonstrate to the Division that their use of big data is not unfairly discriminating against consumers. Separate stakeholder meetings will be held to address specific types of insurance (e.g., life, auto, health), as well as specific insurance practices (e.g., marketing, underwriting, claims management).
The Division has started the stakeholder engagement process for the following line of insurance and insurance practice:
- Life Insurance Underwriting: Life insurance is designed to pay money to a named beneficiary when a person dies, and can be an important part of a family’s long-term financial planning. Underwriting is the process by which an insurance company determines whether to offer insurance coverage to an individual, and if so, what premium the company will charge, based on the company's assessment of that individual’s risk.
- Private Passenger Auto Insurance Underwriting: Auto insurance is important because it provides financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. It is also a legal requirement for operating a vehicle. Underwriting is the process by which an insurance company determines whether to offer insurance coverage to an individual, and if so, what premium the company will charge, based on the company's assessment of that individual’s risk.
Life Insurance Underwriting
Stakeholder Meetings
The Division has hosted a series of stakeholder meetings regarding Senate Bill 21-169 (SB21-169) and Unfair Discrimination in Insurance Practices related to health insurance. Past meeting materials, including recordings, are available by clicking on the "Health Insurance - Stakeholder Meeting Materials" banner below.
Regulations & Guidance
DRAFT PROPOSED Algorithm and Predictive Model Quantitative Testing Regulation
The Division released a DRAFT PROPOSED Algorithm and Predictive Model Quantitative Testing Regulation for informal comments on September 28, 2023. On June 17, 2024, the Division hosted a stakeholder meeting, at which ACLI presented their version of a proposed draft quantitative regulation, the ACLI DRAFT PROPOSED Quantitative Testing Regulation.
Private Passenger Auto Insurance Underwriting
Stakeholder Meetings
The Division has hosted a series of stakeholder meetings regarding Senate Bill 21-169 (SB21-169) and Unfair Discrimination in Insurance Practices related to private passenger auto insurance underwriting. Past meeting materials, including recordings, are available by clicking on the "Private Passenger Auto Insurance Underwriting - Stakeholder Meeting Materials" banner below.
Data Call
The Division has issued a data call to the top ten private passenger auto insurers based on direct written premium through December 31, 2023, as reflected in the Division’s 2024 Statistical Report. The SB21-169 PPA Data Call Template can be accessed here. A recording of the April 18 meeting, which included a discussion of the data call, can be accessed by clicking on the "Private Passenger Auto Insurance Underwriting - Stakeholder Meeting Materials" banner below.
Regulations & Guidance
Amended Regulation 10-1-1 Adopted
The Division has formally adopted Amended Regulation 10-1-1 Governance And Risk Management Framework Requirements For Life Insurers’, Private Passenger Automobile Insurers, And Health Benefit Plan Insurers’ Use Of External Consumer Data And Information Sources, Algorithms, And Predictive Models. The amended regulation, as adopted, will be effective on October 15, 2025, and can currently be accessed on the Division's Regulations Adopted But Not Yet Effective website.
Health Insurance
Stakeholder Meetings
The Division has hosted a series of stakeholder meetings regarding Senate Bill 21-169 (SB21-169) and Unfair Discrimination in Insurance Practices related to health insurance. Past meeting materials, including recordings, are available by clicking on the "Health Insurance - Stakeholder Meeting Materials" banner below.
Regulations & Guidance
Amended Regulation 10-1-1 Adopted
The Division has formally adopted Amended Regulation 10-1-1 Governance And Risk Management Framework Requirements For Life Insurers’, Private Passenger Automobile Insurers, And Health Benefit Plan Insurers’ Use Of External Consumer Data And Information Sources, Algorithms, And Predictive Models. The amended regulation, as adopted, will be effective on October 15, 2025, and can currently be accessed on the Division's Regulations Adopted But Not Yet Effective website.
Stakeholder Meeting Materials
September 3, 2024
- Slide deck 9.3.24 - Unfair Discrimination in Insurance - Life Insurance Underwriting Stakeholder Meeting
- Recording 9.3.24 - Unfair Discrimination in Insurance - Life Insurance Underwriting Stakeholder Meeting
June 17, 2024
October 19, 2023
June 8, 2023
February 7, 2023
April 18, 2025
November 2, 2023
August 24, 2023
- Agenda 8.24.23 - Unfair Discrimination in Insurance - PPA Stakeholder Meeting
- Recording 8.24.23 - Unfair Discrimination in Insurance - PPA Stakeholder Meeting
June 15, 2023
- Agenda 6.15.23 - Unfair Discrimination in Insurance - PPA Stakeholder Meeting
- Recording 6.15.23 - Unfair Discrimination in Insurance - PPA Stakeholder Meeting
April 6, 2023
- Agenda 4.6.23 - Unfair Discrimination in Insurance - PPA Stakeholder Meeting
- Recording 4.6.23 - Unfair Discrimination in Insurance - PPA Stakeholder Meeting
July 30, 2024
- AI Algorithms and Insurance - Consumer Perspectives - Guest presentation
- Recording 7.30.24 - Unfair Discrimination in Insurance - Health Insurance Stakeholder Meeting
April 2, 2024
- Slide deck 4.2.24 - Unfair Discrimination in Insurance - Health Insurance Stakeholder Meeting
- Recording 4.2.24 - Unfair Discrimination in Insurance - Health Insurance Stakeholder Meeting
February 29, 2024
Announcements of future meetings and other news related to the implementation of SB21-169 will be posted on this website, and shared via email notification. You can sign up to receive these and other DOI email notices on the Division's Sign-Up for Division of Insurance Email Lists webpage. For notices specific to SB21-169, click on the "Subscribe to DOI/DORA Email Lists via GovDelivery" button, and select the checkbox next to "External Consumer Data and Unfair Discrimination in Insurance Practices" list.
For additional information about the Division's implementation of SB21-169, please contact Jason Lapham (jason.lapham@state.co.us). For any issues with document or website accessibility, please contact Tara Smith (tara.smith@state.co.us).