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 temporary nature of the waivers and the ability for consumers to file complaints. The commissioner is tasked with monitoring compliance and may revoke waivers if terms are violated or if consumer harm occurs. The act also establishes a reporting requirement for the commissioner to provide annual updates on waiver applications and outcomes. Importantly, the act sets a termination date for the regulatory sandbox on June 30, 2032, and prohibits the granting of new waivers or extensions after June 30, 2029. The Louisiana State Law Institute is directed to redesignate existing laws to accommodate this new subpart.