(1) A sandbox participant shall retain records, documents, and data produced in the ordinary course of business regarding an innovative insurance product or service tested in the regulatory sandbox.

(2) If an innovative insurance product or service fails before the end of a testing period, the sandbox participant shall notify the department and report on actions taken by the sandbox participant to ensure consumers have not been harmed as a result of the failure.

(3) The department shall establish quarterly reporting requirements for a sandbox participant, including information about any customer complaints.

(4) The department may request records, documents, and data from a sandbox participant and, upon the department's request, a sandbox participant shall make such records, documents, and data available for inspection by the department.

(5) If the department determines that a sandbox participant has engaged in, is engaging in, or is about to engage in any practice or transaction that is in violation of Chapter 44, the department may remove a sandbox participant from the regulatory sandbox. If the department determines that the practice or transaction is in violation of state or federal criminal law, the department shall remove the sandbox participant from the regulatory sandbox.

(6) The department shall provide a written report upon request by a member of the Legislature that provides information regarding each sandbox participant and that provides recommendations regarding the effectiveness of the Insurance Regulatory Sandbox Act.