§ 44-9405 — Sandbox participant; deadline; conditions on participation; scope; department; duties; immunity

(1) If the department approves an application under section 44-9404 , the sandbox participant has twelve months after the day on which the application was approved to test the innovative insurance product or service described in the sandbox participant's application.
(2) A sandbox participant testing an innovative insurance product or service within the regulatory sandbox is subject to the following:
(a) Consumers shall be residents of this state;
(b) The department may, on a case-by-case basis, specify the maximum number of consumers that may enter into an agreement with the sandbox participant to use the innovative insurance product or service; and
(c) The department may, on a case-by-case basis, specify the maximum number of innovative insurance products or services that may be offered by a sandbox participant during the test of such product or service.
(3) If a sandbox participant is accepted into the regulatory sandbox, the department shall notify other businesses in the industry that a regulatory waiver was granted in order to afford other businesses the opportunity to apply for the same regulatory waiver if they so choose.
(4) This section does not restrict a sandbox participant who holds a license or other authorization in another jurisdiction from acting in accordance with that license or other authorization.
(5) A sandbox participant is deemed to possess an appropriate license under the laws of the state for the purposes of any provision of federal law requiring state licensure or authorization.
(6) A sandbox participant that is testing an innovative insurance product or service is not subject to state laws, regulations, licensing requirements, or authorization requirements that were identified by the sandbox participant's application and have been waived in writing by the department.
(7) Notwithstanding any other provision of the Insurance Regulatory Sandbox Act, a sandbox participant does not have immunity related to any criminal offense committed during the sandbox participant's participation in the regulatory sandbox.
(8) By written notice, the department may end a sandbox participant's participation in the regulatory sandbox at any time and for any reason, including if the department determines a sandbox participant is not operating in good faith to bring an innovative insurance product or service to market.
(9) The department and the department's employees are not liable for any business losses or the recouping of application expenses related to the regulatory sandbox, including for:
(a) Denying an applicant's application to participate in the regulatory sandbox for any reason; or
(b) Ending a sandbox participant's participation in the regulatory sandbox at any time and for any reason.
(10) No guaranty association in the state may be held liable for business losses or liabilities incurred as a result of activities undertaken by a sandbox participant while participating in the regulatory sandbox.

Legislative History

Source: Laws 2023, LB92, § 92.