Colorado independent insurance agents operate under the oversight of the Colorado Division of Insurance within the Department of Regulatory Agencies — and in 2026 Colorado has become the most discussed state in insurance marketing compliance circles due to its artificial intelligence disclosure law. Colorado SB 24-205, effective February 1, 2026, has created significant confusion among agents about what AI disclosures are required and when. This guide clarifies exactly what the law does and does not require for insurance agents, verified against the enrolled act text and Colorado DOI guidance.
Regulatory Authority
The Colorado Division of Insurance (CDI) within the Department of Regulatory Agencies (DORA) is the primary regulatory authority for insurance advertising and marketing in Colorado.
Primary citations governing Colorado insurance advertising:
- C.R.S. § 10-3-1104 — unfair methods of competition and unfair or deceptive acts in the business of insurance
- C.R.S. § 10-3-1104.9 — Colorado DOI AI and predictive model regulation — the key provision for AI-assisted insurance activities
- Colorado SB 24-205 — artificial intelligence consumer protections, effective February 1, 2026 — adds Part 17 to Article 1 of Title 6 of the Colorado Consumer Protection Act
- 3 Colo. Code Regs. § 702-4 — advertising rules for Colorado-licensed producers
Overall severity profile: High for AI-related compliance questions — Colorado is the most active state regulator on AI in insurance as of 2026. Moderate for standard advertising compliance.
CDI Bulletins: https://doi.colorado.gov/statutes-regulations-bulletins/colorado-insurance-bulletins
CDI Statutes and Regulations: https://doi.colorado.gov/statutes-regulations-bulletins
CDI Agent Licensing: https://doi.colorado.gov/insurance-industry/for-producers/agents
The Colorado AI Disclosure Law — What Agents Actually Need to Know
Colorado SB 24-205 is the most misunderstood compliance development for insurance agents in 2026. Here is exactly what it does and does not require, based on the enrolled act text verified against primary sources.
What SB 24-205 Actually Does
SB 24-205 adds artificial intelligence consumer protections to Colorado law, effective February 1, 2026. The law requires that when a deployer uses a high-risk AI system to make, or be a substantial factor in making, a consequential decision concerning a consumer, the deployer must notify the consumer that a high-risk AI system is being used.
A consequential decision is defined as one that has a material legal or similarly significant effect on the provision or denial of insurance, financial services, housing, healthcare, employment, or education to a consumer.
The Insurance Industry Carve-Out — Critical for Agents
SB 24-205 contains a blanket insurance industry carve-out. The enrolled act text states explicitly that an insurer, a fraternal benefit society, or a developer of an AI system used by an insurer is in full compliance with the AI disclosure requirements of SB 24-205 if the insurer is subject to the requirements of C.R.S. § 10-3-1104.9 and any rules adopted by the Colorado DOI pursuant to that section.
This means: carriers and insurer developers who comply with the existing Colorado DOI AI regulation under § 10-3-1104.9 are fully exempted from SB 24-205's requirements.
What This Means for Independent Agents
The AI disclosure trigger under SB 24-205 is a high-risk AI system making a consequential decision about a consumer — such as an AI underwriting system determining whether to offer coverage or at what rate. It is not triggered by an agent using AI to draft a social media post, write an email, or generate marketing content.
An agent using Claude, ChatGPT, or any other AI writing tool to generate insurance marketing content is not deploying a high-risk AI system making a consequential decision under SB 24-205. The content-generation use case falls outside the law's trigger.
However Colorado agents should be aware that IDOI is actively developing additional AI guidance under § 10-3-1104.9. Agents should monitor CDI bulletins for any new guidance that may affect AI-assisted marketing activities.
The Practical Colorado AI Compliance Position for Agents
- Use AI to generate marketing content — permitted, no SB 24-205 disclosure required for content generation use cases.
- Use AI to make or substantially factor into underwriting or coverage decisions about individual consumers — triggers SB 24-205 disclosure requirements unless the insurer carve-out applies.
- Monitor CDI bulletins for evolving guidance — Colorado is the most active state regulator on AI in insurance and new guidance is likely.
Required Disclosures — Exact Mandated Language
Agent Identification — All Advertising
Every piece of insurance advertising by a Colorado-licensed agent must include the agent's full name and Colorado license number.
Required format:
[Agent Full Name], Licensed Insurance Agent, CO License #[XXXXXXXX]
Medicare Supplement Disclosure — BLOCK Level
All Medicare Supplement advertising in Colorado must include the CMS non-endorsement disclaimer without exception.
Required exact language:
Medicare Supplement insurance plans are not connected with or endorsed by the U.S. Government or the Federal Medicare program.
Company Identification
Colorado agents advertising specific insurance products must clearly identify the insurer whose product is being advertised.
Prohibited Language and Claims
The following content is prohibited in Colorado insurance advertising under C.R.S. § 10-3-1104 and 3 Colo. Code Regs. § 702-4:
- Using "free," "no cost," or similar terms to describe premium-funded benefits without full disclosure.
- Implying government endorsement or sponsorship of any insurance product.
- Rate or premium claims without disclosing that individual rates vary based on underwriting factors.
- Using "savings" or "save money" without a specific, documented basis.
- Claiming "guaranteed approval" or "guaranteed issue" without fully disclosing all eligibility conditions.
- Omitting material exclusions, limitations, or waiting periods from benefit-focused advertising.
- Making comparison claims without ensuring substantially similar coverage and citing the comparison date.
- Using testimonials that make atypical claims without a clear disclaimer.
- Fabricating or materially altering testimonials — BLOCK-level violation.
- AI-generated testimonials — prohibited under FTC 2023 guidelines.
Rate and Price Advertising
Colorado follows the NAIC Model #40 baseline for rate advertising:
- Specific premium amounts must be accompanied by disclosure that rates vary based on individual underwriting factors.
- Medicare Advantage $0 premium advertising requires genuine $0 premium, specific plan and county identification, and availability disclosure.
- ACA premium advertising must disclose estimates based on subsidy eligibility.
- Life insurance premium quotes must specify term versus permanent and disclose key underwriting factors.
Social Media Compliance
CDI applies the same advertising standards to social media as to all other channels:
- All social media profiles used for insurance marketing must include agent name and Colorado license number.
- Targeted ads must include agent identification in ad copy itself.
- Stories, Reels, and short-form video with product references are treated as advertising.
- Reshared client reviews become the agent's advertising.
Colorado DORA has not issued specific social media advertising bulletins as of June 2026. NAIC Model Social Media guidance applies.
Recordkeeping Requirements
Colorado-licensed producers must maintain records of all advertising materials:
- Maintain all advertising materials for a minimum of three years from the date last used.
- Document compliance review for each piece of advertising.
- Maintain records of carrier or FMO approval.
- Keep consent records for SMS marketing campaigns.
Continuing Education
Colorado requires licensed producers to complete continuing education for license renewal. Current CE requirements are maintained by CDI at: https://doi.colorado.gov/insurance-industry/for-producers/agents
State-Specific Quirks Colorado Agents Should Know
- Colorado SB 24-205 AI disclosure framework is the most significant state-specific development for Colorado agents in 2026 — covered in full detail above. Key takeaway: content-generation AI is not the trigger. Consequential-decision AI is.
- Colorado has not adopted a Medigap birthday rule as of June 2026. Unlike Virginia, Indiana, and California, Colorado does not provide a birthday-window guaranteed-issue switching right for Medigap policyholders.
- Colorado has adopted NAIC Model #275 annuity best-interest standards. Colorado agents selling annuities must comply with best-interest obligations, disclosure requirements, and documentation standards.
- Colorado rebating rules are enforced under C.R.S. § 10-3-1104. Offering anything of value as an inducement to purchase insurance is prohibited.
- Colorado CDI is the most active state regulator on AI in insurance nationally. Agents operating in Colorado should monitor CDI bulletins more frequently than in other states — quarterly at minimum.
Where to Verify — Official Colorado Regulatory Sources
CDI Bulletins: https://doi.colorado.gov/statutes-regulations-bulletins/colorado-insurance-bulletins
CDI Statutes and Regulations: https://doi.colorado.gov/statutes-regulations-bulletins
CDI Agent Licensing: https://doi.colorado.gov/insurance-industry/for-producers/agents
CDI Announcements: https://doi.colorado.gov/announcements
Colorado SB 24-205 Enrolled Act: https://content.leg.colorado.gov/sites/default/files/2024a_205_signed.pdf
How ACC Handles Colorado Compliance Automatically
Colorado agents using the Agency Command Center have every piece of marketing content checked against CDI advertising standards. The ACC compliance engine applies the correct scope of Colorado SB 24-205 — flagging consequential-decision AI use cases while correctly treating content-generation AI as outside the law's disclosure trigger. Agent identification is injected automatically. Medicare disclaimers are enforced at the BLOCK level. Every compliance decision is logged in a timestamped audit trail. And as CDI issues new AI guidance ACC's compliance database is updated quarterly so Colorado agents are never caught off guard by regulatory changes.
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Compliance information on this page is provided for educational purposes based on publicly available regulatory sources and does not constitute legal advice. Regulatory requirements are subject to change. All compliance rules should be independently verified against current primary sources before being relied upon. Last updated June 2026.
Sources: C.R.S. § 10-3-1104 | C.R.S. § 10-3-1104.9 | Colorado SB 24-205 (P.L. signed May 17, 2024, effective February 1, 2026) | 3 Colo. Code Regs. § 702-4 | NAIC Model #40 | NAIC Model #275 | CMS Publication 100-16 Chapter 3 | FTC 16 CFR Part 255 | CDI https://doi.colorado.gov