Colorado Quantitative Testing Rule

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 has waived that reporting element until it adopts them. The waiver first covered two annual reports from life insurers. Amended Bulletin B-10.004, reissued June 10, 2026, now reaches all three regulated lines and stays in place line by line until the testing rules arrive.

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.