UT Code § 31A-47-103 (2021)
2021 Utah Code|Title 31A - Insurance Code|Chapter 47 - Insurance Regulatory Sandbox Program|Section 103 - Insurance Regulatory Sandbox Program -- Application requirements.

 Effective 5/12/2020  31A-47-103. Insurance Regulatory Sandbox Program -- Application requirements.    (1) There is created in the department the Insurance Regulatory Sandbox Program.     (2) In administering the insurance regulatory sandbox, the department:   (a) shall consult with each applicable agency;     (b) shall establish a program to enable a person to obtain limited access to the market in the state to test an innovative insurance product or service without obtaining a license or other authorization that might otherwise be required;     (c) may enter into agreements with or follow the best practices of the Consumer Financial Protection Bureau or other states that are administering similar programs; and     (d) may not approve participation in the insurance regulatory sandbox program by an applicant or any other participant who has been convicted, entered a plea of nolo contendere, or entered a plea of guilty or nolo contendere held in abeyance, for a crime:   (i) involving theft, fraud, or dishonesty; or     (ii) that bears a substantial relationship to the applicant's or participant's ability to safely or competently participate in the insurance regulatory sandbox program.         (3) An applicant for the insurance regulatory sandbox shall provide to the department an application in a form prescribed by the department that:   (a) includes a nonrefundable application fee of $4,500, which fee may be waived or reduced by the department if the applicant holds a license issued by the department under the provisions of Title 31A, Insurance Code;     (b) demonstrates the applicant is subject to the jurisdiction of the state;     (c) demonstrates the applicant has established a physical or virtual location that is adequately accessible to the department, from which testing will be developed and performed and where all required records, documents, and data will be maintained;     (d) contains relevant personal and contact information for the applicant, including legal names, addresses, telephone numbers, email addresses, website addresses, and other information required by the department;     (e) discloses criminal convictions of the applicant or other participating personnel, if any;     (f) demonstrates that the applicant has the necessary personnel, financial and technical expertise, access to capital, and developed plan to test, monitor, and assess the innovative insurance product or service;     (g) contains a description of the innovative insurance product or service to be tested, including statements regarding all of the following:   (i) how the innovative insurance product or service is subject to licensing or other authorization requirements outside of the insurance regulatory sandbox, including a specific list of all state laws, regulations, and licensing or other requirements that the applicant is seeking to have waived during the testing period;     (ii) how the innovative insurance product or service would benefit consumers;     (iii) how the innovative insurance product or service is different from other insurance products or services available in the state;     (iv) what risks may confront consumers that use or purchase the innovative insurance product or service;     (v) how participating in the insurance regulatory sandbox would enable a successful test of the innovative insurance product or service;     (vi) a description of the proposed testing plan, including estimated time periods for beginning the test, ending the test, and obtaining necessary licensure or authorizations after the testing is complete;     (vii) a description of how the applicant will perform ongoing duties after the test; and     (viii) how the applicant will end the test and protect consumers if the test fails, including providing evidence of sufficient liability coverage and financial reserves to protect consumers and to protect against insolvency by the applicant; and       (h) provides any other required information as determined by the department.       (4) An applicant shall file a separate application for each innovative insurance product or service that the applicant wants to test.     (5) After an application is filed and before approving an application, the department may seek any additional information from the applicant and from the department's own research that the department determines is necessary, including:   (a) proof of sufficient assets, accounts, liability coverage, surety bond coverage, or other preparation by the applicant to ensure that consumers are protected and that the applicant will be able to cover ongoing duties when the test ends or if the test ends early; and     (b) industry ratings and past performance of the applicant.       (6) Subject to Subsection (7), not later than 90 days after the day on which a complete application is received by the department, the department shall inform the applicant as to whether the application is approved for entry into the insurance regulatory sandbox.     (7) The department and an applicant may mutually agree to extend the 90-day time period described in Subsection (6) for the department to determine whether an application is approved for entry into the insurance regulatory sandbox.     (8)   (a) In reviewing an application under this section, the department shall consult with, and get approval from, each applicable agency before admitting an applicant into the insurance regulatory sandbox.     (b) The consultation with an applicable agency may include seeking information about whether:   (i) the applicable agency has previously issued a license or other authorization to the applicant;     (ii) the applicable agency has previously investigated, sanctioned, or pursued legal action against the applicant;     (iii) whether the applicant could obtain a license or other authorization from the applicable agency after exiting the insurance regulatory sandbox; and     (iv) whether certain licensure or other regulations should not be waived even if the applicant is accepted into the insurance regulatory sandbox.         (9) In reviewing an application under this section, the department shall consider whether a competitor to the applicant is or has been an insurance sandbox participant and, if so, weigh that as a factor in favor of allowing the applicant to also become an insurance sandbox participant.     (10) If the department and each applicable agency approve admitting an applicant into the insurance regulatory sandbox an applicant may become an insurance sandbox participant.     (11) The department may deny any application submitted under this section, for any reason, at the department's discretion.     (12) If the department denies an application submitted under this section, the department shall provide to the applicant a written description of the reasons for the denial as an insurance sandbox participant.    Enacted by Chapter 141, 2020 General Session