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 438 Engrossed 2025 Regular Session Firment
Abstract: Modifies the definition of "expenses" and prohibits use of "institutional advertising
expenses" in setting insurance rates.
Present law defines "expenses" and specifically excludes loss adjustment expenses.
Proposed law retains present law and further excludes "institutional advertising expenses", defined
as advertising expenses not aimed at obtaining business for a specific insurer nor providing
consumers with information pertinent to the decision of whether to purchase an insurance product.
Present law authorizes insurers to use certain expense provisions that reflect respective operating
methods, past expenses, and anticipated expenses to determine whether the insurer's rates are
excessive, inadequate, or unfairly discriminatory.
Proposed law retains present law and prohibits insurers from considering its institutional advertising
expenses for the purpose of setting rates.
Effective Jan. 1, 2026.
(Amends R.S. 22:1452(C)(intro. para.) and (7) and 1454(B)(3); Adds R.S. 22:1452(C)(9.1))