Create new sections of Subtitle 3 of KRS Chapter 304 to define terms, including “beta test,”; “exclusivity period”; “insurance innovation”; “limited no-action letter” “permanent no-action letter,” and “regulatory sandbox”; create an application process for admitting companies to the regulatory sandbox for the purpose of permitting the company to beta test an insurance innovation under a limited no-action letter; impose certain disclosure and financial stability requirements for companies making an application; establish a director of insurance innovation within the Department of Insurance; establish procedures and requirements for the review and acceptance of applications; grant the commissioner authority to modify, increase, or change certain application requirements; grant the commissioner authority to reject applications; allow companies to file a petition for reconsideration and request a hearing upon rejection of an application; establish requirements for issuing a limited no-action letter; establish how long the safe harbor of a limited no-action letter persists; set time period for a beta test at one year; allow a beta test to be extended for up to one year; establish requirements for a beta test; establish company’s rights during a beta test; authorize the commissioner to issue certain orders to enforce the terms and conditions of a beta test; establish requirements for an exclusivity period; authorize the commissioner to issue an order terminating the exclusivity period; establish a cause of action for infringement of exclusivity period; establish reporting requirements for evaluation of beta test by the commissioner; establish requirements for issuance of a permanent no-action letter by the commissioner; establish that certain documents relating to the financial condition of a company are confidential and not subject to public disclosure pursuant to the Kentucky Open Records Act; establish certain disclosure rights of the commissioner; require the commissioner to submit reports relating to the administration of Sections 1 to 9 of this Act.