HB 612

HLS 26RS-1046  ORIGINAL
 2026 Regular Session
 HOUSE BILL NO. 612
 BY REPRESENTATIVE GREEN
 INSURANCE: Provides relative to institutional advertising expenses
1AN ACT
2 To amend and reenact R.S. 22:1452(C)(7) and 1454(B)(3) and to repeal R.S.
322:1452(C)(9.1), relative to insurance rate regulation; to prohibit the use of
4advertising expenses in setting rates; and to provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6Section 1. R.S. 22:1452(C)(7) and 1454(B)(3) are hereby amended and reenacted
7 to read as follows:
8§1452. Purpose of rate regulation; construction; definitions
9*       *  *
10C. As used in this Subpart, the following definitions apply:
11*       *  *
12(7) "Expenses" means that portion of a rate attributable to acquisition, field
13supervision, collection expenses, general expenses, taxes, licenses, and fees and does
14not include loss adjustment expenses or institutional advertising expenses.
15*       *  *
16§1454. Rating standards and methods
17*       *  *
18B. In determining whether rates are excessive, inadequate, or unfairly
19discriminatory, consideration may be given to the following items:
20*       *  *
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 CODING: Words in struck through type are deletions from existing law; words underscored
 are additions.
HLS 26RS-1046  ORIGINAL
  HB NO. 612
1(3) Expenses. The expense provisions shall reflect the operating methods
2of the insurer, the past expense experience of the insurer, and anticipated future
3expenses. However, an insurer shall not consider its institutional advertising
4expenses for the purpose of setting rates.
5*       *  *
6Section 2. R.S. 22:1452(C)(9.1) is hereby repealed in its entirety.
  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 612 Original  2026 Regular Session  Green
Abstract: Establishes a prohibition against insurers incorporating advertising expenditures
  into their rate-setting processes. Outlines the procedures for asserting trade secret
  protections related to rate filings and stipulates the conditions which the public may
  access the filing information. Sets penalties for false claims of trade secret
  protection.
Present law defines "institutional advertising expenses".
Proposed law repeals present law.
Present law defines "expenses" for purposes of insurance rate regulation and excludes loss
adjustment expenses and institutional advertising expenses from the definition.
Present law also prohibits an insurer from considering its institutional advertising expenses
when setting rates.
Proposed law removes the limitation to institutional advertising expenses and prohibits
insurers from considering any advertising expenses when setting rates. Proposed law makes
corresponding changes to the definition of "expenses" and to the rating standards.
(Amends R.S. 22:1452(C)(7) and 1454(B)(3); Repeals R.S. 22:1452(C)(9.1))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.