This bill amends existing Louisiana insurance regulations by updating definitions and prohibiting certain expenses from being considered in rate-setting. Specifically, it modifies the definition of "expenses" to exclude "loss adjustment expenses" and now includes "institutional advertising expenses," which are defined as advertising not aimed at acquiring business for a specific insurer or providing relevant consumer information. Additionally, the bill stipulates that insurers cannot consider institutional advertising expenses when determining rates, ensuring that such costs do not influence the pricing of insurance products.

The effective date for these changes is set for January 1, 2026. The amendments aim to enhance transparency and fairness in the insurance market by clarifying what constitutes allowable expenses in rate calculations, thereby protecting consumers from potential rate inflation due to unnecessary advertising costs.

Statutes affected:
HB438 Original: 22:1452(C), 22:1454(B)(3)
HB438 Engrossed: 22:1452(C), 22:1454(B)(3)
HB438 Enrolled: 22:1452(C), 22:1454(B)(3)
HB438 Act 85: 22:1452(C), 22:1454(B)(3)