CO| The Colorado Division of Insurance Amended Regulation 10-1-1, outlines governance and risk management requirements for insurers offering individual life insurance, private passenger automobile insurance, and health benefit plans when using external consumer data and information sources (ECDIS), algorithms, and predictive models. The regulation, effective October 15, 2025, mandates insurers establish a robust, documented framework to prevent unfair discrimination, particularly regarding race, and sets comprehensive reporting and compliance requirements to ensure transparency and accountability.
Key Points:
- Requires insurers to implement a risk-based governance framework overseeing ECDIS, algorithms, and predictive models to prevent unfair discrimination.
- Establishes detailed documentation, testing, and monitoring standards, including quantitative testing to detect unfair discrimination and procedures for regular oversight and review.
- Assigns board-level and senior management accountability, cross-functional oversight, and annual reviews of governance and risk management processes.
- Sets specific reporting deadlines for compliance, with annual submissions required via the SERFF system, and outlines exemptions for insurers not using ECDIS or related models.
- Stipulates enforcement mechanisms, confidentiality provisions, and consequences for non-compliance, including civil penalties and potential license suspension or revocation.