HLS 23RS-627 ENGROSSED
2023 Regular Session
HOUSE BILL NO. 252
BY REPRESENTATIVE ROBBY CARTER
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
INSURANCE/RATES: Provides for the exclusion of advertising expenses in setting rates
or making rate filings
1 AN ACT
2To amend and reenact R.S. 22:1452(C)(7) and 1454(B)(3), relative to rate making and rate
3 filing; to prohibit the use of advertising expenses in rate setting; to provide for
4 definitions; and to provide for related matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 22:1452(C)(7) and 1454(B)(3) are hereby amended and reenacted
7to read as follows:
8 §1452. Purpose of rate regulation; construction; definitions
9 * * *
10 C. As used in this Subpart, the following definitions shall be applicable
11 apply:
12 * * *
13 (7) "Expenses" means that portion of a rate attributable to acquisition, field
14 supervision, collection expenses, general expenses, taxes, licenses, and fees and does
15 not include loss adjustment expenses or advertising expenses.
16 * * *
17 §1454. Rating standards and methods
18 * * *
19 B. In determining whether rates are excessive, inadequate, or unfairly
20 discriminatory, consideration may be given to the following items:
21 * * *
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 23RS-627 ENGROSSED
HB NO. 252
1 (3) Expenses. The expense provisions shall reflect the operating methods
2 of the insurer, the past expense experience of the insurer, and anticipated future
3 expenses. Advertisement expenses of an insurer shall not be used by the insurer or
4 considered in any manner in the loss or expense experience for the purpose of setting
5 rates or making rate filings.
6 * * *
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 252 Engrossed 2023 Regular Session Robby Carter
Abstract: Prohibits the use of advertising expenses by the insurer in setting rates or making
rate filings with the commissioner of insurance.
Present law defines "expenses" for the purposes of present law.
Proposed law excludes advertisement expenses from the definition of "expenses" in present
law.
Present law provides that when determining whether rates are excessive, inadequate, or
unfairly discriminatory, expenses may be considered if the expense provisions reflect the
operating methods of the insurer, the past expense experience of the insurer, and anticipated
future expenses.
Proposed law provides that advertisement expenses of an insurer shall not be used by the
insurer or considered in the losses or expenses when setting rates or making rate filings.
(Amends R.S. 22:1452(C)(7) and 1454(B)(3))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the
original bill:
1. Make technical changes.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.