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(1) If the department approves an application under Section 31A-47-103, the insurance sandbox participant has 12 months after the day on which the application was approved to test the innovative insurance product or service described in the insurance sandbox participant's application.
(2) An insurance sandbox participant testing an innovative insurance product or service within the insurance regulatory sandbox is subject to the following:
(a) consumers shall be residents of the 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 insurance sandbox participant to use the innovative insurance product or service;
(c) the department may, if applicable and on a case by case basis, specify the maximum number of items and the maximum coverage amount for each item that may be offered by an insurance sandbox participant during the testing of the innovative insurance product or service; and
(d) the department may, on a case by case basis, specify liability coverage requirements and minimum financial reserves requirements that the insurance sandbox participant shall meet during the testing of the innovative insurance product or service.
(3) This section does not restrict an insurance sandbox participant who holds a license or other authorization in another jurisdiction from acting in accordance with that license or other authorization.
(4) An insurance 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.
(5) An insurance 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 insurance sandbox participant in the insurance sandbox participant's application and have been waived in writing by the department.
(6) Notwithstanding any other provision of this chapter, an insurance sandbox participant does not have immunity related to any criminal offense committed during the insurance sandbox participant's participation in the insurance regulatory sandbox.
(7) By written notice, the department may end an insurance sandbox participant's participation in the insurance regulatory sandbox at any time and for any reason, including if the department determines an insurance sandbox participant is not operating in good faith to bring an innovative insurance product or service to market.
(8) The department and the department's employees are not liable for any business losses or the recouping of application expenses related to the insurance regulatory sandbox, including for:
(a) denying an applicant's application to participate in the insurance regulatory sandbox for any reason; or
(b) ending an insurance sandbox participant's participation in the insurance regulatory sandbox at any time and for any reason.
(9) No guaranty association in the state may be held liable for business losses or liabilities incurred as a result of activities undertaken by a participant in the insurance sandbox.