---
title: HB 401. Insurance; prohibit insurers from considering advertising costs when making or using insurance rates
collection: bills
id: 2025-2026/hb401
cite_as: HB 401, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb401
md_url: https://georgiacommons.org/bills/2025-2026/hb401.md
text_url: https://georgiacommons.org/bills/2025-2026/hb401/text
source_url: https://www.legis.ga.gov/legislation/70203
date: 2025-02-13
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/bills/2025-2026.md
previous: https://georgiacommons.org/bills/2025-2026/hb400.md
next: https://georgiacommons.org/bills/2025-2026/hb402.md
index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb401.md?full=1
bill_number: HB 401
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-02-11
last_action: House Second Readers
sponsors:
- Spencer Frye
- Martin Momtahan
- Jordan Ridley
- Eric Bell
- Shea Roberts
- Stacey Evans
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB401/2025
upstream_id: 1965821
summaries_model: claude-sonnet-5
topic_tags:
- insurance rates
- insurance regulation
- insurance advertising
- consumer protection
---
# HB 401. Insurance; prohibit insurers from considering advertising costs when making or using insurance rates
## Text
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 to
regulation of rates, underwriting rules, and related organizations, so as to prohibit insurers
from considering advertising costs when making or using insurance rates; to provide for a
definition; to provide for related matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 9 of Title 33 of the Official Code of Georgia Annotated, relating to regulation of
rates, underwriting rules, and related organizations, is amended in Code Section 33-9-2,
relating to definitions, by adding a new paragraph to read as follows:
"(0.5) 'Advertising costs' means any expenditures an insurer incurs to promote its
products, services, or brand through any media channel."
SECTION 2.
Said chapter is further amended in Code Section 33-9-4, relating to standards applicable to
making and use of rates, by striking "and" at the end of paragraph (9), replacing the period
at the end of paragraph (10) with "; and", and adding a new paragraph to read as follows:
"(11) No insurer shall base any standard or rating plan in whole or in part, directly or
indirectly, upon advertising costs."
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
House Bill 401 would bar insurance companies operating in Georgia from factoring their own advertising expenses into how they set insurance rates for customers.
### Plain-language summary
Under current Georgia law, insurers have leeway in choosing what factors go into their rating plans, the formulas that determine how much customers pay for coverage. This bill changes that by adding a new rule to Georgia's insurance rate regulation law (O.C.G.A. Title 33, Chapter 9).
The bill first defines 'advertising costs' as any money an insurer spends to promote its products, services, or brand through any media channel. It then adds a new standard saying no insurer may base its rating plan, in whole or in part, directly or indirectly, on those advertising costs. The bill does not set an enforcement mechanism or penalty beyond the existing rate regulation framework, and it repeals any conflicting laws.
### What it does
- Adds a new definition of 'advertising costs' to Georgia's insurance code, covering any spending to promote an insurer's products, services, or brand through any media channel.
- Adds a new rule to the standards for insurance rate-making (O.C.G.A. § 33-9-4) barring insurers from basing their rating plans on advertising costs, directly or indirectly.
- Repeals any existing Georgia laws that conflict with this new restriction.
### Who it affects
Insurance companies licensed to sell coverage in Georgia, since they would lose the ability to fold advertising and marketing spending into their rate calculations. Georgia policyholders are also affected, since the rule could change how their premiums are determined.
### Why it matters
If enacted, insurers would have to set rates without factoring in what they spend on advertising and brand promotion, which could affect how premiums are calculated for Georgia consumers. The practical effect on actual premium prices depends on how much advertising cost currently influences insurers' rate filings.
### Key provisions
- Section 1 amends the definitions section (O.C.G.A. § 33-9-2) to add 'advertising costs,' defined as any expenditures to promote products, services, or brand through any media channel.
- Section 2 amends the rate-making standards (O.C.G.A. § 33-9-4) by adding paragraph (11), which forbids insurers from basing any standard or rating plan, in whole or in part, directly or indirectly, on advertising costs.
- Section 3 repeals any conflicting laws, a standard closing provision with no substantive effect beyond the new rule itself.
## Status
- Status: Introduced (2025-02-11)
- Last action: House Second Readers (2025-02-13)
- Sponsors: Spencer Frye, Martin Momtahan, Jordan Ridley, Eric Bell, Shea Roberts, Stacey Evans
- Official page: https://www.legis.ga.gov/legislation/70203
> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb401.md?full=1