Which factor is NOT considered when the North Carolina Rate Bureau proposes rates?

The reason marketing expenses for insurance products are not considered when the North Carolina Rate Bureau proposes rates is that the focus of rate-making primarily revolves around loss experience, potential future losses, and the costs necessary to handle claims and pay benefits.

Past loss and expense experience is crucial because it provides a historical basis from which to project future rates. Insurers need to analyze how much has been paid out in claims and the operational costs associated with those claims to ensure that rates are adequate to cover those expenses.

Possible future losses and expenses are also important as they help the rate-making process anticipate changes in the risk landscape, such as new market trends or economic conditions that may affect claims.

Investment income is considered because it impacts the overall profitability of insurance operations. Insurers invest the premiums they collect, and the income from these investments can influence how competitive rates can be set while still achieving financial stability.

In summary, marketing expenses are typically excluded from the rate-setting process because they do not directly relate to the insurance function of assessing risk and supporting claims. Instead, the calculations focus on financial factors that directly affect the insurer's obligations to policyholders.