The proposed legislation enacts the "Insurance Regulatory Sandbox Act" as Subpart M-1 of Part IV of Chapter 4 of Title 22 of the Louisiana Revised Statutes. This act allows the commissioner of insurance to grant innovation waivers to applicants who demonstrate that existing insurance laws hinder the introduction of innovative products or services. The bill outlines specific requirements for applicants, including disclosures about the product or service, potential consumer benefits and risks, and a filing fee. It also establishes consumer protections, mandates public notice of waiver applications, and requires the commissioner to report annually on the waivers granted, denied, and their impacts.

Additionally, the act includes provisions for reciprocity with other states that have similar laws, allowing for streamlined consideration of applications from entities that have received waivers elsewhere. The act is set to terminate on June 30, 2032, and prohibits the granting of new waivers or extensions after June 30, 2029. The Louisiana State Law Institute is tasked with redesignating existing laws to accommodate this new subpart. The act will take effect upon the governor's signature or after the designated period for bills to become law without signature.