Kentucky Gov. Matt Bevin signed into law legislation to permit and encourage insurance innovation in the state. HB 386 creates a “sandbox” that will allow for the development of creative risk management solutions and enable the state to embrace innovation across the insurance industry. The regulatory sandbox, which will be administered by the Department of Insurance (“DOI”), allows for private-sector flexibility while preserving necessary consumer protections. Insurance Commissioner Nancy Atkins says:
“We look forward to promoting Kentucky as a place for insurance innovation . . . Insurance products and distribution are rapidly evolving with our ever-changing economy. This legislation establishes a framework to allow Kentucky to encourage product development for the future of risk management.”
Companies wishing to participate in the sandbox must apply to DOI for admission. An applicant must explain their product’s innovation, value to customers, and demonstrate financial stability. The law goes into effect on June 27.
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