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 must demonstrate that the waiver will not significantly increase consumer risk and is in the public interest. The act outlines the application requirements, including disclosures about the product or service, potential consumer benefits and risks, and the necessary fees. It also stipulates that waivers can be granted for an initial period of up to three years, with the possibility of a one-time extension.

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 outcomes. The act includes provisions for reciprocity with other states that have similar laws and sets a termination date for the regulatory sandbox on June 30, 2032. The legislation also directs the Louisiana State Law Institute to redesignate existing laws related to portable electronics insurance.