What is considered unlawful discrimination in Colorado's insurance laws?

In Colorado's insurance laws, unlawful discrimination refers to practices that unfairly differentiate between individuals or groups based on certain immutable characteristics or statuses. Denying coverage based on race, gender, or health status is a clear example of this type of discrimination.

The reason this is deemed unlawful is rooted in the principle of equality and fairness. Insurance should be based on risk assessment that is relevant and pertinent to the individual's circumstances rather than biased characteristics that do not correlate to the risk being insured. Therefore, using factors like race or gender—which individuals cannot change—essentially perpetuates systemic inequities and forms a barrier to access insurance, rendering such practices illegal under Colorado's discrimination laws.

In contrast, offering different rates based on location can be part of legitimate underwriting practices, reflecting variations in risk associated with different geographic regions. Similarly, declining claims that exceed a specific monetary limit might be based on policy terms rather than discriminatory practices. Lastly, restricting coverage to younger individuals could be part of targeted marketing strategies or underwriting guidelines, provided it does not violate other specific anti-discrimination laws. Hence, these practices do not inherently carry the same unlawful discriminatory connotation as denying coverage based on race, gender, or health status.