Colorado SB 21-169 is an early AI-in-insurance law that bars insurers from using external consumer data sources, algorithms, or predictive models in a way that unfairly discriminates against protected classes. It has been in effect since September 7, 2021.
What Colorado SB 21-169 Requires of Insurers
Insurers must disclose what external data and models they use, run risk management frameworks that test for discriminatory outcomes, continuously monitor their systems, and provide attestations from their chief risk officers. The Division of Insurance implements the law through rulemaking by insurance line, so obligations arrive product by product.
Exemptions and Current Status
Title insurance, surety bonds, and commercial lines are exempt. For everything else, this is the operative rule set for AI-driven underwriting and pricing in Colorado today.
Insurers and insurtech vendors working in Colorado should treat bias testing and monitoring as standing obligations, with documentation ready for the regulator rather than assembled after the fact.
Source: Colorado General Assembly: SB 21-169
Report a violation: If you believe a business is violating this law, you can file a complaint with the Colorado Attorney General Consumer Protection Section.
