House Bill No. by Representative Green amends existing insurance rate regulation laws in Louisiana by prohibiting insurers from incorporating any advertising expenses into their rate-setting processes. Specifically, the bill modifies the definition of "expenses" in R.S. 22:1452(C)(7) to exclude all advertising expenses, not just institutional advertising expenses, and makes corresponding changes to the rating standards in R.S. 22:1454(B)(3). Additionally, the bill repeals R.S. 22:1452(C)(9.1), which previously defined "institutional advertising expenses."

The bill aims to ensure that insurance rates are determined based on relevant operational costs rather than marketing expenditures, thereby promoting fairness and transparency in the insurance market. By removing the allowance for any advertising expenses in rate calculations, the legislation seeks to protect consumers from potentially inflated insurance costs that could arise from insurers' marketing strategies.

Statutes affected:
HB612 Original: 22:1452(C)(7), 22:1454(B)(3), 22:1452(C)(9, 22:1)