Colorado Bill Restricting Insurers’ Use of External Data and Algorithms Passes First Hurdle

Recently, long-term care insurers have focused a substantial investment of resources in evaluating and assessing the feasibility of wellness programs aimed at keeping policyholders healthier and at home as they age. This goal meets the stated desires of almost all policyholders, and also delays and/or lessens the severity of any long term care insurance claims that policyholders might be eligible for. Many of these wellness programs utilize predictive analytics of various types, including algorithmic data analysis, predictive models and artificial intelligence. Regulators and lawmakers have been focused on these types of Insurtech offerings, and have been particularly attentive to potential discrimination issues that might arise.

Recent events in Colorado’s legislature provide a particular significant example of the types of legislation that may arise. Just this week, Colorado Senate Bill 21-169 passed its first test, as the Senate Business, Labor & Technology Committee approved a strike-below version of the bill by a 4-3 margin. The bill is designed to restrict insurers’ use of external data and algorithms. What does the revised bill include? Read a new client alert from our colleagues Scott Kosnoff, Bennett Borden and Kacey Stotler to find out more. Additional coverage of Bill 21-169 can be found on our website.

The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.

About the Author: Nolan Tully

Nolan Tully advocates for insurance and financial services clients facing challenges in various aspects of their businesses. Nolan assists life, long-term care and disability insurers as well as annuity issuers with product development, regulatory compliance, and dispute resolution and litigation. Visit Nolan's bio on the Faegre Drinker website.

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