This bill amends existing Louisiana insurance regulations by updating definitions and prohibiting certain expenses from being included in the rate-setting process for insurers. Specifically, it modifies the definition of "expenses" to exclude "loss adjustment expenses" and introduces a new category, "institutional advertising expenses," which refers to advertising that does not directly aim to acquire business or provide relevant consumer information about insurance products.

Additionally, the bill stipulates that when determining whether insurance rates are excessive, inadequate, or unfairly discriminatory, insurers are prohibited from considering their institutional advertising expenses in the rate-setting process. The effective date for these changes is set for January 1, 2026.

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)