Senate Bill No. 298, introduced by Senator Duplessis, aims to amend existing insurance regulations by prohibiting insurers from using their advertising expenses when setting rates. The bill specifically amends R.S. 22:1452(C)(7) and 1454(B)(3) to clarify that "expenses" related to rate determination do not include advertising costs, particularly those categorized as "institutional advertising expenses." Additionally, the bill repeals R.S. 22:1452(C)(9.1), which previously defined these advertising expenses.

The proposed changes are intended to ensure that insurance rates are based solely on relevant operational costs and not influenced by marketing expenditures. By eliminating the consideration of advertising expenses in rate calculations, the bill seeks to promote fairness and transparency in the insurance market, ultimately benefiting consumers.

Statutes affected:
SB298 Original: 22:1542(C)(7), 22:1454(B)(3), 22:1452(C)(9, 22:1)