The proposed legislation enacts the "Insurance Regulatory Sandbox Act," which establishes a framework for innovation waivers within the insurance sector in Louisiana. This act allows the commissioner of insurance to grant variances or waivers from specific insurance laws and regulations to facilitate the introduction of innovative insurance products or services. Applicants for these waivers must demonstrate that the existing regulations hinder innovation, that public policy goals can be met through alternative means, and that consumer risks will not be significantly increased. The act outlines the application requirements, including disclosures about the product or service, potential consumer benefits and risks, and a filing fee determined by the commissioner.

Additionally, the act mandates consumer protections, including clear disclosures about the nature of the products or services offered under a waiver, and establishes a reporting requirement for the commissioner to provide annual updates on waiver applications and their outcomes. The act also includes provisions for reciprocity with other states that have similar laws, and it sets a termination date for the program on June 30, 2032. The commissioner is granted authority to revoke waivers if compliance is not maintained or if consumer harm occurs, and the act stipulates that no new waivers or extensions will be granted after June 30, 2029.