2022 22LSO-0064
STATE OF WYOMING
SENATE FILE NO. SF0055
Insurance sandbox.
Sponsored by: Select Committee on Blockchain, Financial Technology and Digital Innovation Technology
A BILL
for
1 AN ACT relating to insurance; creating the insurance
2 sandbox for the testing of products and services in
3 Wyoming; authorizing limited waivers of specified statutes
4 and rules; establishing standards and procedures for
5 sandbox applications, operations and supervision;
6 authorizing reciprocity agreements with other regulators;
7 creating an account; imposing fees; requiring a consumer
8 protection bond; specifying standards for the suspension
9 and revocation of sandbox authorization; authorizing rules
10 and orders; creating an account; providing an
11 appropriation; and providing for effective dates.
12
13 Be It Enacted by the Legislature of the State of Wyoming:
14
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1 Section 1. W.S. 26-55-101 through 26-55-109 are
2 created to read:
3
4 CHAPTER 55
5 INSURANCE SANDBOX ACT
6
7 26-55-101. Short title.
8
9 This chapter may be cited as the "Insurance Sandbox Act."
10
11 26-55-102. Definitions:
12
13 (a) As used in this chapter:
14
15 (i) "Consumer" means a person, whether a natural
16 person or a legal entity, in Wyoming who purchases or
17 enters into an agreement to receive an innovative insurance
18 product or service made available through the insurance
19 sandbox act;
20
21 (ii) "Innovative" means the use or incorporation
22 of a new idea or emerging technology, or a new use of
23 existing technology, to address a problem, provide a
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1 benefit or otherwise offer a product, service, business
2 model or delivery mechanism;
3
4 (iii) "Insurance product or service" means a
5 product or service related to insurance that is subject to
6 the statutory or rule requirements identified in W.S.
7 26-55-103(a) and is under the jurisdiction of the
8 commissioner;
9
10 (iv) "Insurance sandbox" means the program
11 created by this chapter that allows a person to make an
12 innovative insurance product or service available to
13 consumers during a sandbox period through a waiver of
14 existing statutory and rule requirements, or portions
15 thereof, by the commissioner;
16
17 (v) "Sandbox period" means the period of time,
18 initially not longer than twenty-four (24) months, in which
19 the commissioner has authorized an innovative insurance
20 product or service to be made available to consumers, which
21 shall also encompass any extension granted under W.S.
22 26-55-108.
23
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1 26-55-103. Insurance sandbox waiver; applicability of
2 criminal and consumer protection statutes; referral to
3 investigatory agencies; civil liability.
4
5 (a) Notwithstanding any other provision of law, a
6 person who makes an innovative insurance product or service
7 available to consumers pursuant to this chapter may be
8 granted a waiver of specified requirements imposed by
9 statute or rule, or portions thereof, if these statutes or
10 rules do not currently permit the product or service to be
11 made available to consumers. A waiver under this subsection
12 shall exempt no more statutory or regulatory provisions
13 than necessary to accomplish the purposes and standards set
14 forth in this act, as determined by the commissioner.
15 Except as provided in subsection (e) of this section, the
16 following statutes, and the rules adopted under them, or
17 portions of these statutes and rules, may be waived by the
18 commissioner for the sandbox period, upon receipt and
19 approval of an application made pursuant to W.S. 26-55-104:
20
21 (i) W.S. 26-3-101 through 26-3-503;
22
23 (ii) W.S. 26-4-101 through 26-4-105;
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1
2 (iii) W.S. 26-5-101 through 26-5-119;
3
4 (iv) W.S. 26-6-101 through 26-6-403;
5
6 (v) W.S. 26-7-101 through 26-7-116;
7
8 (vi) W.S. 26-8-101 through 26-8-204;
9
10 (vii) W.S. 26-9-201 through 2-9-235;
11
12 (viii) W.S. 26-11-101 through 26-11-124;
13
14 (ix) W.S. 26-12-101 through 26-12-303;
15
16 (x) W.S. 26-13-101 through 26-13-305;
17
18 (xi) W.S. 26-14-101 through 26-14-118;
19
20 (xii) W.S. 26-15-101 through 26-15-201;
21
22 (xiii) W.S. 26-16-101 through 26-16-505;
23
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1 (xiv) W.S. 26-17-101 through 26-17-130;
2
3 (xv) W.S. 26-18-101 through 26-18-307;
4
5 (xvi) W.S. 26-19-101 through 26-19-312;
6
7 (xvii) W.S. 26-20-101 through 26-20-701;
8
9 (xviii) W.S. 26-21-101 through 26-21-114;
10
11 (xix) W.S. 26-22-101 through 26-22-505;
12
13 (xx) W.S. 26-23-101 through 26-23-406;
14
15 (xxi) W.S. 26-24-101 through 26-24-151;
16
17 (xxii) W.S. 26-25-101 and 26-25-109;
18
19 (xxiii) W.S. 26-27-101 through 26-27-129;
20
21 (xxiv) W.S. 26-28-101 through 26-28-131;
22
23 (xxv) W.S. 26-29-201 through 26-29-239;
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1
2 (xxvi) W.S. 26-31-101 through 26-31-117;
3
4 (xxvii) W.S. 26-32-101 through 26-32-201;
5
6 (xxviii) W.S. 26-33-101 through 26-33-111;
7
8 (xxix) W.S. 26-34-101 through 26-34-135;
9
10 (xxx) W.S. 26-35-101 through 26-35-204;
11
12 (xxxi) W.S. 26-36-101 through 26-36-116;
13
14 (xxxii) W.S. 26-37-101 through 26-37-128;
15
16 (xxxiii) W.S. 26-38-101 through 26-38-209;
17
18 (xxxiv) W.S. 26-39-101 through 26-39-104;
19
20 (xxxv) W.S. 26-40-101 through 26-40-201;
21
22 (xxxvi) W.S. 26-41-101 through 26-41-103;
23
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1 (xxxvii) W.S. 26-42-101 through 26-42-118;
2
3 (xxxviii) W.S. 26-43-101 through 26-43-114;
4
5 (xxxix) W.S. 26-44-101 through 26-44-119;
6
7 (xl) W.S. 26-45-101 through 26-45-108;
8
9 (xli) W.S. 26-46-101 through 26-46-107;
10
11 (xlii) W.S. 26-47-101 through 26-47-113;
12
13 (xliii) W.S. 26-48-101 through 26-48-212;
14
15 (xliv) W.S. 26-49-101 through 26-49-111;
16
17 (xlv) W.S. 26-51-101 through 26-51-110;
18
19 (xlvi) W.S. 26-52-101 through 26-52-104;
20
21 (xlvii) W.S. 26-53-101 through 26-53-103;
22
23 (xlviii) W.S. 26-54-101 through 26-54-108.
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1
2 (b) A person who makes an innovative insurance
3 product or service available to consumers pursuant to this
4 chapter is:
5
6 (i) Not immune from civil damages for acts and
7 omissions relating to this chapter; and
8
9 (ii) Subject to all criminal and consumer
10 protection laws.
11
12 (c) If necessary, the commissioner may refer
13 suspected violations of law relating to conduct undertaken
14 pursuant to this chapter to appropriate state or federal
15 agencies for investigation, prosecution, civil penalties
16 and other appropriate enforcement actions.
17
18 (d) If service of process on a person making an
19 innovative insurance product or service available to
20 consumers in the insurance sandbox is not feasible, service
21 on the secretary of state shall be deemed service on the
22 person.
23
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1 (e) No waiver or element of a waiver shall be granted
2 under this chapter if the waiver or element would
3 jeopardize the state's NAIC accreditation or would violate
4 any requirements associated with NAIC accreditation.
5
6 26-55-104. Insurance sandbox application; standards
7 for approval; consumer protection bond.
8
9 (a) A person shall apply to the commissioner to make
10 an innovative insurance product or service available to
11 consumers in the insurance sandbox. The person shall
12 specify in an application the statutory or regulatory
13 requirements for which a waiver is sought and the reasons
14 why these requirements prohibit the innovative insurance
15 product or service from being made available to consumers.
16 The application shall also contain all information required
17 by the commissioner to evaluate the application pursuant to
18 subsection (f) of this section. The commissioner shall
19 prescribe by rule a method of application.
20
21 (b) A person may apply under this section without a
22 current valid license in the product or service area for
23 which the person is applying, but the application submitted
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1 pursuant to subsection (f) of this section shall not be
2 considered complete until the person has obtained a valid
3 license.
4
5 (c) A business entity making an application under
6 this section shall be a licensed domestic corporation or
7 other licensed organized domestic entity with a physical
8 presence, in addition to that of a registered office or
9 agent, in Wyoming.
10
11 (d) Before a person applies on behalf of a business
12 entity intending to make an innovative insurance product or
13 service available through the insurance sandbox, the person
14 shall obtain the consent of the business entity.
15
16 (e) An application made under this section shall be
17 accompanied by a fee of five hundred dollars ($500.00). The
18 fee shall be deposited into the insurance sandbox account
19 as provided in W.S. 26-55-105. Nothing in this chapter
20 shall be construed as conferring a right or privilege on
21 any person or entity:
22
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1 (i) To offer an innovative insurance product or
2 service under this act;
3
4 (ii) For the waiver of any statute or rule
5 specified in this act.
6
7 (f) The commissioner shall approve or deny an
8 insurance sandbox application in writing within ninety (90)
9 days of receiving the complete application. The
10 commissioner and the person who has made an application may
11 jointly agree to extend the time for approval or denial of
12 the application beyond ninety (90) days. The commissioner
13 may impose conditions on any application approval,
14 consistent with this act. In deciding to approve or deny an
15 application under this subsection, the commissioner shall
16 consider each of the following:
17
18 (i) The nature of the innovative insurance
19 product or service proposed to be made available to
20 consumers in the sandbox, including all relevant technical
21 details;
22
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1 (ii) The potential risk to consumers and methods
2 that will be used to protect consumers and resolve
3 complaints during the sandbox period;
4
5 (iii) A business plan proposed by the applicant,
6 including a statement of arranged capital;
7
8 (iv) Whether the applicant has the necessary
9 personnel, adequate financial and technical expertise and a
10 sufficient plan to test, monitor and assess the innovative
11 insurance product or service;
12
13 (v) Whether any person substantially involved in
14 the development, operation or management of the innovative
15 insurance product or service has been convicted of, or is
16 currently under investigation for, fraud, state or federal
17 insurance violations or any property based offense;
18
19 (vi) A copy of the disclosures required under
20 W.S. 26-55-106(c) that will be provided to consumers;
21
22 (vii) If an application seeks a waiver of a
23 statute or rule relating to W.S. 26-55-103(a)(i), (iii),
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1 (iv), (xxi), (xxiii) through (xxvi), (xxix), (xxxi),
2 (xxxvi), (xxxvii), (xxxix) through (xliii), (xlv) or
3 (xlviii) the commissioner shall coordinate the terms of the
4 waiver with the NAIC prior to approving the waiver to
5 ensure there is no violation of W.S. 26-55-103(e);
6
7 (viii) Any other factor that the commissioner
8 determines to be relevant.
9
10 (g) If an application is approved under subsection
11 (f) of this section, the commissioner shall specify the
12 statutory or rule requirements, or portions thereof, for
13 which a waiver is granted and the length of the initial
14 sandbox period, consistent with W.S. 26-55-102(a)(v). The
15 commissioner shall also post on the department's website
16 notice of the approval of a sandbox application under this
17 subsection, a summary of the innovative insurance product
18 or service and the contact information of the person making
19 the product or service available through the sandbox.
20
21 (h) A person authorized under subsection (f) of this
22 section to participate in the insurance sandbox shall post
23 a consumer protection bond with the commissioner as
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1 security for potential losses suffered by consumers. The
2 bond amount shall be determined by the commissioner in an
3 amount not less than ten thousand dollars ($10,000.00) and
4 shall be commensurate with the risk profile of the
5 innovative insurance product or service. The commissioner
6 may require that a bond under this subsection be increased
7 or decreased at any time based on risk profile. Unless a
8 bond is enforced under W.S. 26-55-109(b)(ii), the
9 commissioner shall cancel or allow the bond to expire not
10 later than two (2) years after the date of the conclusion
11 of the sandbox period.
12
13 (j) Authorization under subsection (f) of this
14 section to participate in the insurance sandbox shall not
15 be construed to create a property right.
16
17 26-55-105. Insurance sandbox account.
18
19 (a) There is created the insurance sandbox account.
20 Funds within the account shall only be expended by
21 legislative appropriation. All funds within the account
22 shall be invested by the state treasurer and all investment
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1 earnings from the account shall be credited to the general
2 fund.
3
4 (b) Subject to legislative appropriation, application
5 fees remitted to the account pursuant to W.S. 26-55-104(e)
6 shall be deposited into the account. These funds, and any
7 additional funds appropriated by the legislature, shall be
8 used only for the purposes of administering t