Bill > HB401

This bill modifies Georgia's insurance rate regulation laws by adding a new provision that explicitly prohibits insurance companies from considering advertising expenses when calculating insurance rates. The bill first defines "advertising costs" as any expenditures an insurer makes to promote its products, services, or brand through any media channel, which could include television, radio, online, print, or other advertising platforms. Then, it adds a new requirement to the existing insurance rate standards that explicitly prevents insurers from basing any standard or rating plan, either directly or indirectly, on advertising costs. This means that the money an insurance company spends on marketing and promotional activities cannot be factored into the premiums charged to consumers. The purpose of the bill appears to be ensuring that insurance rates are based on more substantive factors like risk assessment, claims history, and actual service costs, rather than allowing marketing expenses to influence pricing. The bill concludes with a standard clause repealing any conflicting laws, which ensures this new provision will take precedence over any previous regulations that might allow advertising costs to be considered in rate-setting.

Business and Industry

https://www.legis.ga.gov/legislation/70203