HB401: HB401 Insurance; prohibit insurers from considering advertising costs when making or using insurance rates

25 LC 52 0723 House Bill 401 By: Representatives Frye of the 122nd, Momtahan of the 17th, Ridley of the 22nd, Bell of the 75th, Roberts of the 52nd, and others A BILL TO BE ENTITLED AN ACT To amend Chapter 9 of Title 33 of the Official Code of Georgia Annotated, relating to1 regulation of rates, underwriting rules, and related organizations, so as to prohibit insurers2 from considering advertising costs when making or using insurance rates; to provide for a3 definition; to provide for related matters; to repeal conflicting laws; and for other purposes.4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5 SECTION 1.6 Chapter 9 of Title 33 of the Official Code of Georgia Annotated , relating to regulation of7 rates, underwriting rules, and related organizations, is amende d in Code Section 33-9-2,8 relating to definitions, by adding a new paragraph to read as follows: 9 "(0.5) 'Advertising costs' means any expenditures an insurer in curs to promote its10 products, services, or brand through any media channel."11 SECTION 2.12 Said chapter is further amended in Code Section 33-9-4, relating to standards applicable to13 making and use of rates, by striking "and" at the end of paragraph (9), replacing the period14 at the end of paragraph (10) with "; and", and adding a new paragraph to read as follows: 15 H. B. 401 - 1 - 25 LC 52 0723 "(11) No insurer shall base any standard or rating plan in whol e or in part, directly or16 indirectly, upon advertising costs."17 SECTION 3.18 All laws and parts of laws in conflict with this Act are repealed.19 H. B. 401 - 2 -