House Bill No. by Representative Firment aims to amend existing insurance regulations in Louisiana by modifying the definition of "expenses" and prohibiting the inclusion of "institutional advertising expenses" when setting insurance rates. The bill specifically retains the current definition of "expenses," which excludes loss adjustment expenses, and adds a new definition for "institutional advertising expenses." This new definition clarifies that such expenses are not aimed at acquiring business for a specific insurer or providing relevant consumer information regarding insurance products.

Additionally, the bill amends the criteria for determining whether insurance rates are excessive, inadequate, or unfairly discriminatory. While insurers are allowed to consider various expense provisions reflecting their operating methods and past experiences, they are explicitly prohibited from including institutional advertising expenses in their rate-setting calculations. The changes outlined in this bill will take effect on January 1, 2026.

Statutes affected:
HB438 Original: 22:1452(C), 22:1454(B)(3)