Bill > HB438

This bill amends Louisiana insurance regulations by introducing a new definition for "institutional advertising expenses" and prohibiting insurers from using these expenses when calculating insurance rates. Specifically, the bill defines institutional advertising as advertising that does not aim to obtain business for a specific insurer or provide consumers with directly relevant insurance product information. The legislation modifies existing insurance rate-setting standards to explicitly exclude these institutional advertising expenses from the calculation of insurance rates. When determining whether insurance rates are excessive, inadequate, or unfairly discriminatory, insurers must now consider expense factors like acquisition costs, field supervision, collection expenses, and operational expenses, but cannot factor in the costs of institutional advertising. The bill will take effect on January 1, 2026, giving insurance companies time to adjust their rate-setting practices to comply with the new requirement. The primary goal appears to be preventing insurers from passing the costs of broad, non-informative advertising onto consumers through higher insurance premiums.

Business and Industry

https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=HB438&sbi=y