SB1723 - Insurance Industry Innovation Act

• Creates an Innovation Division within the Department of Insurance to promote insurance product innovations and streamline regulatory approval processes for covered persons offering new insurance services or products.

• Allows individuals to petition the Department to waive or modify insurance-related statutory requirements or Department rules if the innovation serves the public interest, improves access to insurance products or services, does not present systemic risk, and promotes consumer protection.

• Establishes a petition and approval process requiring the Department to publish petitions for 60-day public comment periods (which may be waived for similar innovations) and make determinations within 30 days of the comment period ending or 60 days of receipt if waived.

• Permits approved covered persons to enter into enforceable compliance agreements with the Department that include terms for offering the innovation, with protections from enforcement actions by other state agencies if the agreement is disclosed to them.

• Requires annual reports to the General Assembly on the aggregate impact of compliance agreements, including innovative regulatory tools used, burdensome state laws identified, and recommendations for reducing regulatory overlap; Act expires December 31, 2022.