HB 1195 Summary

• Creates a Regulatory Sandbox Program administered by the Department of Agriculture and Commerce allowing applicants to test innovative financial products or services for up to 24 months without obtaining licenses, subject to department approval after consulting with applicable agencies.

• Creates an Insurance Regulatory Sandbox Program administered by the Mississippi Insurance Department allowing applicants to test innovative insurance products or services for up to 12 months without obtaining licenses, with a nonrefundable application fee of $4,500 (waivable for existing licensees).

• Requires sandbox participants to disclose to consumers that the product/service is being tested, may not function as intended, is not state-endorsed, and carries financial risk; participants must maintain records and submit periodic reports to the department.

• Participants may request extensions of up to 6 months beyond the testing period to obtain required licenses; must continue fulfilling ongoing duties (such as loan servicing) after exiting the sandbox.

• Department may deny or terminate participation for any reason and is not liable for business losses; no state guaranty associations are liable for participant activities under the insurance sandbox.