California Court Says Commissioner Can Prohibit Pass Thru of Advertising Costs

February 13, 2017

  • February 14, 2017 at 4:55 pm
    Lou Landini says:
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    What a stupid decision. California judges seem to think their intelligence is greater than that of the President, company directors and everyone else who owns a business. Marketing and advertising are essential parts of everyone’s business. Of course business needs to pass through all expenses. That’s the way it’s done, otherwise they go broke. Also companies are very good at adding and subtracting. Better than government. Totally dumb. Let’s see, we’ll take over the Presidency of the US, and also your company.

    • February 14, 2017 at 6:01 pm
      George Lee says:
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      Lou is full of poo! No, that’s not the way it’s done. Rates are generally based on loss experience, not whether the insurance company overspent their advertising budget. That’s why requests for increases in Ca. & N.C. in particular are being refused by regulatory bodys. With Lou’s Adam Smith logic, I’m sure he wouldn’t object to “Obamacare” passing along it’s advertising expense

  • February 15, 2017 at 11:32 am
    Observor says:
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    Mr. Landini makes a valid point. CEOs have to inform the public that they exist. They balance that cost with the challenges of remaining competitive in the market as well as taking care of other expenses in addition to losses and the cost of adjusting claims. Unlike utilities, the insurance market has many players where a free market on pricing is much better for the consumer in the long term.

    I would also point out the hypocrisy in that the California insurance commissioner markets himself for free on the tax payer paid DOI website. Most of the items on the first page are really self promotion for him.

  • February 16, 2017 at 11:31 am
    KP says:
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    Have you seen Mercury’s commercials, they’re terrible.



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