SB 21-169 CO
Restrict Insurers' Use Of External Consumer Data
A state bill is a proposed law in a state legislature — separate from the U.S. Congress. Learn more →
Summary
The act prohibits an insurer from:Unfairly discriminating based on an individual's race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, or gender expression in any insurance practice; or Pursuant to rules adopted by the commissioner of insurance (commissioner), using any external consumer data and information source, algorithm, or predictive model (external data source) with regard to any insurance practice that unfairly discriminates against an individual based on an individual's race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, or gender expression. After a stakeholder process, the commissioner shall adopt rules for specific types of insurance, by insurance practice, which rules establish means by which an insurer may demonstrate that it has tested whether its use of an external data source unfairly discriminates based on an individual's race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, or gender expression. Any such rules shall not become effective until January 1, 2023, at the earliest, for any type of insurance. The rules must require each insurer to:Provide information to the commissioner concerning the external data sources used by the insurer in the development and implementation of algorithms and predictive models for a particular type of insurance and insurance practice; Provide an explanation of the manner in which the insurer uses external data sources for the particular type of insurance and insurance practice; Establish and maintain a risk management framework that is reasonably designed to determine, to the extent practicable, whether the insurer's use of external data sources unfairly discriminates against individuals based on their race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, or gender expression; Provide an assessment of the results of the risk management framework and actions taken to minimize the risk of unfair discrimination, including ongoing monitoring; and Provide an attestation by the insurer's chief risk officer that the insurer has implemented the risk management framework appropriately on a continuous basis. The rules adopted by the commissioner must include provisions establishing:A reasonable period of time for insurers to remedy any unfairly discriminatory impact in an external data source; and The ability of insurers to use external data sources that have been previously assessed by the division of insurance (division) and found not to be unfairly discriminatory. Documents, materials, and other information in the possession or control of the division that are obtained by, created by, or disclosed to the commissioner or any other person pursuant to the new requirements are recognized as proprietary and containing trade secrets. The commissioner may use the documents, materials, or other information in furtherance of any regulatory or legal action and make the data publicly available in an aggregated or de-identified format.The commissioner may examine and investigate an insurer's use of an external data source in any insurance practice.In the department of regulatory agencies' annual "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act" report to the legislative committees of reference, the division shall include:Information concerning any rules adopted pertaining to this act; Information concerning any changes in insurance rates that have resulted from the prohibitions described in the act; and A summary of the stakeholder process, including a description of data sources insurers may use to comply with this act. The requirements described in the act do not apply to:Title insurance; Bonds executed by qualified surety companies; or Insurers of exempt commercial policyholders.(Note: This summary applies to this bill as enacted.)
Sponsors (3)
- Janet Buckner · primary
- Naquetta Ricks Democratic · primary
- Daneya Esgar · primary
Action history (16)
- Jul 6, 2021 Governor Signed · executive
- Jun 23, 2021 Sent to the Governor · executive
- Jun 23, 2021 Signed by the Speaker of the House · lower
- Jun 23, 2021 Signed by the President of the Senate · upper
- Jun 7, 2021 Senate Considered House Amendments - Result was to Concur - Repass · upper
- Jun 7, 2021 House Third Reading Passed - No Amendments · lower
- Jun 4, 2021 House Third Reading Laid Over Daily - No Amendments · lower
- Jun 3, 2021 House Second Reading Special Order - Passed with Amendments - Committee, Floor · lower
- May 28, 2021 House Committee on Health & Insurance Refer Amended to House Committee of the Whole · lower
- May 18, 2021 Introduced In House - Assigned to Health & Insurance · lower
- May 13, 2021 Senate Third Reading Passed - No Amendments · upper
- May 12, 2021 Senate Second Reading Passed with Amendments - Committee, Floor · upper
- May 10, 2021 Senate Second Reading Laid Over to 05/12/2021 - No Amendments · upper
- May 6, 2021 Senate Second Reading Laid Over to 05/10/2021 - No Amendments · upper
- May 3, 2021 Senate Committee on Business, Labor, & Technology Refer Amended to Senate Committee of the Whole · upper
- Mar 2, 2021 Introduced In Senate - Assigned to Business, Labor, & Technology · upper
Text versions (10)
The published texts of this bill as it moves through the legislature. Each links to the official document on the state legislature site. Data from OpenStates.
Full text
The full text hasn’t been imported yet. CivicGate fetches it from the state legislature’s published version documents — check now.
Comments
Data from OpenStates. View on OpenStates →
Comments