The Silver State, a state known for vibrant entertainment and breathtaking landscapes, recently made a strong move toward innovation. In 2025, Assembly member PK O’Neil introduced Assembly Bill 376, which Governor Joe Lombardo signed into law after passing through both chambers of the Nevada Legislature unanimously. A.B. 376 implements a property insurance sandbox.
Previously, in 2019, Senator Ben Kieckhefer sponsored Senate Bill 163, which saw the state implement its first regulatory sandbox by targeting the financial technologies, or fintech, industry. This sandbox sunsetted in December 2022.
What Regulatory Sandboxes Do
A regulatory sandbox allows businesses, under the observation of regulators, to develop and offer new products, services, and business models while receiving a temporary waiver of rules and regulations inapplicable to their innovative ideas.
The sandbox:
- Allows a company to temporarily offer its products and services in a controlled environment for up to four years
- Requires a company to remain transparent to the consumers in an effort to inform them of the services they are exploring
- Provides a process for entering and exiting from the sandbox so consumers aren’t left high and dry
- Establishes the property insurance sandbox in Nevada’s Division of Insurance.
If the trial is a success, the sandbox offers a path forward for the company to enter the open market while also providing guidance to the insurance department on which regulations require reform or even repeal.
In an effort to address growing issues with insurance cancellations and non-renewals over wildfire risks, it’ll be interesting to see what the “next big thing” will come as a result of Nevada’s property insurance sandbox.
Americans for Prosperity Nevada and Nevada Policy Research Institute proved instrumental in getting A.B. 376 across the finish line with unanimous support. Nevada now joins fifteen other states that have sandboxes of their own.
Regulatory sandboxes are an issue that Libertas has researched extensively, and we stand ready to help your state pursue this reform as we have with Nevada. For groups or legislators in other
