Colorado SB21-169

• Authority: Colorado
• Parent authority: State governments
• Jurisdiction: United States
• Collections: U.S. state and local documents
• Most recent activity: Enacted
• Most recent activity date: 2021-07-06

Risk subdomain coverage

Good coverage — Comprehensive governance measures or mitigations with clear procedures relating to the risk subdomain are explicitly described.

• Unfair discrimination and misrepresentation
• Unequal performance across groups
• Governance failure

Minimal coverage — Brief mention but no specific mitigations, recommendations or governance measures relating to the risk subdomain are described.

• Lack of transparency or interpretability

All other risk subdomains had no coverage in this document.

Risk Coverage Summary

The document has good coverage of approximately 3-4 subdomains, with strong focus on unfair discrimination (1.1), unequal performance across groups (1.3), and governance failure (6.5). Coverage is concentrated in discrimination/toxicity and socioeconomic domains, specifically addressing algorithmic discrimination in insurance practices.

Sector coverage

Good coverage — Comprehensive governance measures or mitigations with clear procedures relating to the sector are explicitly described.

• Finance & Insurance

All other sectors had no coverage in this document.

Sectors Summary

This document primarily governs the Finance and Insurance sector, with comprehensive requirements for insurers using algorithms and predictive models. It applies across multiple insurance types including life, health, property, and casualty insurance, with specific exemptions for title insurance, certain surety bonds, and most commercial insurance policies.

Legislative Status

Hard Law

Legislative Status Summary

This is a binding state statute enacted by the Colorado General Assembly that creates mandatory legal obligations for insurers, establishes enforcement mechanisms through the insurance commissioner, and includes specific compliance requirements with regulatory oversight.

Actors

Proposer

• Entity Types: AI_Governance_Actor
• Entities: Colorado General Assembly
• Summary: The document is a state bill enacted by the Colorado General Assembly, which is the legislative body that proposed and passed this law.

Target

• Entity Types: AI_Deployer
• Entities: Insurers operating in Colorado (excluding title insurance, certain surety bonds, and most commercial insurance policies)
• Summary: The law explicitly targets insurers that use external consumer data, algorithms, and predictive models in insurance practices including marketing, underwriting, pricing, utilization management, reimbursement methodologies, and claims management.

Enforcer

• Entity Types: AI_Governance_Actor
• Entities: Colorado Commissioner of Insurance; Division of Insurance; Department of Regulatory Agencies
• Summary: The Commissioner of Insurance is granted explicit authority to adopt rules, conduct examinations and investigations, and enforce compliance with the statute's requirements.

Monitor

• Entity Types: AI_Governance_Actor
• Entities: Colorado Commissioner of Insurance; Division of Insurance; Department of Regulatory Agencies; Legislative committees of reference
• Summary: The Commissioner and Division are responsible for ongoing monitoring through risk management frameworks, and must report to legislative committees annually on implementation, rule adoption, rate changes, and stakeholder engagement.

AI Lifecycle Stages

Lifecycle stages covered by the documents, as defined in the OECD Framework for the Classification of AI Systems

• Collect and Process Data
• Build and Use Model
• Verify and Validate
• Deploy
• Operate and Monitor

AI Lifecycle Summary

The document primarily addresses the Deploy and Operate and Monitor stages, with some coverage of Build and Use Model and Verify and Validate stages. It focuses on the deployment of algorithms and predictive models in insurance practices and requires ongoing monitoring and risk management frameworks to detect discriminatory impacts.

Technical Scope

Terms relating to technical scope that are mentioned or implicitly referenced in the document

• AI Models
• AI Systems
• Predictive AI
• Task-specific AI

Technical Scope Summary

The document explicitly mentions algorithms and predictive models extensively. It defines these terms and regulates their use in insurance practices. The document focuses on predictive AI rather than generative AI, and does not mention frontier AI, general purpose AI, foundation models, or compute thresholds.