Colorado Quantitative Testing Rule
A Colorado Division of Insurance draft regulation that would set quantitative testing standards for life underwriting models under SB 21-169. Not adopted.
The Colorado Quantitative Testing Rule is a draft, not a rule in force. The Division of Insurance released it for informal comment on September 28, 2023, covering quantitative testing of external consumer data, algorithms, and predictive models used for life insurance underwriting, and it has not been adopted. Two texts have been in play since a June 2024 stakeholder meeting, the Division’s own and a rival text tabled there by the American Council of Life Insurers, and neither has entered formal rulemaking.
The draft would have been one of the first concrete regulatory testing regimes for insurance AI in the U.S., treating unfair discrimination as a measurable output rather than a hypothetical risk. Its absence has practical consequences. The adopted governance rule, Regulation 10-1-1, asks insurers to document testing conducted “pursuant to requirements established by the Division,” and because those requirements do not exist the Division waived that reporting element for two annual reports from life insurers, the ones due in December 2024 and December 2025. Bulletin B-10.004 says every report after those two is expected to include the description, so the life filing due in December 2026 falls outside the waiver.
Anyone tracking Colorado’s layered approach should keep the layers straight: Regulation 10-1-1 is adopted and covers life, auto, and health; the quantitative testing rule is not; and SB 26-189’s disclosure and recourse duties largely defer back to the insurance regime for the practice of insurance. What the adopted regulation asks for, and where it runs wider or narrower than the NAIC model bulletin, is set out on the Colorado state page.