Colorado SB 26-189
A 2026 Colorado law that replaced SB 24-205 with a narrower disclosure-and-recourse framework for automated decision-making in insurance.
Colorado Senate Bill 26-189, signed in May 2026, repealed the Colorado AI Act (SB 24-205) and replaced it with a narrower law focused on automated decision-making. It takes effect on January 1, 2027, and requires developers and deployers of automated decision-making technology, not “high-risk AI systems,” to disclose that use and give consumers a route to human review and data correction.
One piece of it did not wait. SECTION 3 added subsection (3)(e) to C.R.S. 10-3-1104.9, letting the insurance Commissioner write or update rules on notice and disclosure from insurers to consumers, and SECTION 5(2) put that subsection in force on the May 14, 2026 signature rather than in 2027.
For insurers the rest of the law mostly defers. Under section 6-1-1708(1)(a), an insurer and its affiliated entities, where already subject to C.R.S. 10-3-1104.9 (the SB 21-169 statute), are treated as having satisfied this law wherever they are doing the business of insurance. The deference does not cover an insurer’s own employment and hiring systems, and it gives no cover to vendors or third-party administrators. That last point is a change rather than a continuation: the repealed SB 24-205 had extended the same shelter to the developer of an AI system used by an insurer, and SB 26-189 dropped the clause.
The law was passed under federal pressure, and Executive Order 14365 made its example of the problem a Colorado statute banning “algorithmic discrimination,” described in those words with no bill number attached. SB 26-189 is narrower, and after that deference its remaining demands on a licensed insurer sit almost entirely outside the practice of insurance. The deadlines and operational specifics are in our full analysis of SB 26-189.