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 hosted a stakeholder meeting regarding Senate Bill 21-169 (SB 21-169) and Unfair Discrimination in Insurance Practices, focusing on quantitative testing of underwriting decisions in life insurance, on September 3, 2024, from 11:00 - 12:00 pm MDT. At this meeting, ACLI and members of the life insurance industry addressed comments received on their proposed draft quantitative testing regulation, which was presented at the Division's June 17 stakeholder meeting.
A recording of the September meeting can be accessed directly HERE. A recording and copy of the presentation from the June 17 meeting can be accessed directly HERE. Stakeholders may submit any additional comments on the ACLI DRAFT Proposed Quantitative Testing Regulation to DORA_INS_RulesandRecords@state.co.us no later than September 13, 2024.
The ACLI proposed draft regulation, and copies of comments submitted to the Division, can be access by clicking on the following buttons:
ACLI DRAFT PROPOSED Quantitative Testing Regulation
First Round - Comments on ACLI DRAFT PROPOSED Quantitative Testing Regulation
Second Round - Comments on ACLI DRAFT PROPOSED Quantitative Testing Regulation
Materials from all past meetings related to life insurance underwriting can be accessed by clicking on the button below:
DRAFT Proposed Regulations
The Division released a DRAFT PROPOSED Algorithm and Predictive Model Quantitative Testing Regulation for informal comments on September 28, 2023. All interested stakeholders - including insurance companies, insurance agents/producers, consumer representatives, and other interested parties - were invited to submit written informal comments on this draft regulation by October 26, 2023.
A copy of the DRAFT PROPOSED Regulation and the comments received can be accessed by clicking on the buttons below:
DRAFT PROPOSED Algorithm and Predictive Model Quantitative Testing Regulation
Quantitative Testing Regulation - Informal Comments
Adopted Regulations
Private Passenger Auto Insurance Underwriting
Stakeholder Meetings
The Division hosted a stakeholder meeting regarding Senate Bill 21-169 (SB21-169) and Unfair Discrimination in Insurance Practices on April 18, 2025, from 12:00 - 1:00 pm MDT. At this meeting, the Division discussed an upcoming data call for private passenger auto insurance and solicited feedback related to the template and requested data. The Division is anticipating limiting the scope of the 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 Division is requesting feedback on the following:
- Data Fields
- If definitions are vague, ambiguous, or otherwise unclear
- If carriers do not have data for a particular data field
- If there is an alternative field/data element to suggest
- Data Structure
- Confirm the overall data structure is feasible, i.e., row per vehicle*driver for Policies; row per claim*coverage for Claims
- Other
- Any other questions regarding how you would respond to any specific part of the data request
Stakeholders can submit written comments on the reporting template and requested data to DORA_INS_RulesandRecords@state.co.us by April 25, 2025.
The SB21-169 PPA Data Call Template can be accessed here. A recording of the April 18 meeting can be accessed here.
Past meeting materials related to private passenger auto insurance underwriting can be accessed by clicking on the button below:
DRAFT Proposed Regulations
The Division will hold a VIRTUAL Permanent Rulemaking Hearing on Monday, June 2, 2025 at 11:00 AM via webinar, to hear testimony on DRAFT Proposed 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 DRAFT proposed regulation includes updates to revise existing requirements for life insurers, and to expand the regulation's applicability to private passenger automobile insurers and health benefit plan insurers. Stakeholders can register for the rulemaking hearing by clicking on the button below:
Register for June 2 Rulemaking Hearing
The Division previously released a draft proposed version of this regulation on December 6, 2024, for external stakeholder comment. External stakeholder comments were due on December 13, 2024, and can be accessed by clicking on the button below:
Health Insurance
Stakeholder Meetings
The Division hosted a stakeholder meeting regarding Senate Bill 21-169 (SB21-169) and Unfair Discrimination in Insurance Practices on January 22, 2025, from 2:00 - 3:00 pm MT. This meeting focused on comments received on the proposed revisions to DRAFT Proposed 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 to update the regulation and to include private passenger auto insurance and health insurance.
A recording of the January 22 meeting can be accessed directly HERE. A copy of the presentation from the January 22 meeting can be accessed directly HERE.
Past meeting materials related to health insurance can be accessed by clicking on the button below:
DRAFT Proposed Regulations
On December 6, 2024, the Division released DRAFT Proposed 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, for external stakeholder comment. The DRAFT proposed regulation includes updates to revise existing requirements for life insurers, and to expand the regulation's applicability to private passenger automobile insurers and health benefit plan insurers. External stakeholder comments were due on December 13, 2024, and can be accessed by clicking on the button below:
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).