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A BILL TO BE ENTITLED
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AN ACT
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relating to the board of directors of the Texas Mutual Insurance |
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Company. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Amend Section 2054.052 to read as follows: |
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Sec. 2054.052. QUALIFICATIONS. (a) Each board member must |
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be a resident of this state. |
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(b) An individual may not serve as a board member if the |
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individual or the individual's spouse [, another individual related
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to the individual within the second degree by consanguinity or
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affinity, or another individual residing in the same household with
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the individual]: |
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(1) is registered or licensed under this code or is |
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required to be registered or licensed under this code; |
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(2) is employed by or acts as an insurance [a] |
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consultant to a person, or has a controlling financial interest in |
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an organization, registered or licensed under this code or required |
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to be registered or licensed under this code; |
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(3) [owns, controls, has a financial interest in, or
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participates in the management of an organization registered or
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licensed under this code or required to be registered or licensed
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under this code;
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[(4)] receives a substantial tangible benefit from the |
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company or the department; or |
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(4) [(5)] is an officer, employee, or consultant of an |
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association in the field of insurance. |
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(c) Subsection (b) does not prohibit an individual from |
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serving as a board member if the individual is only a policyholder |
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or a consumer of insurance or insurance products. |
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[(d)
An individual who is ineligible to serve on the board
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under Subsection (b) may not serve as a board member until the first
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anniversary of the date the condition that makes the individual
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ineligible ends.] |
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SECTION 2. Amend Section 2054.103(b), Insurance Code, to |
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read as follows: |
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(b) The president must have proven successful experience as |
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an executive at the general management level in [the] business [of
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insurance]. |
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SECTION 3. Section 2054.059(b), Insurance Code, is amended |
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to read as follows: |
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(b) A special meeting may be called by any two board members |
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on five [two] days' notice. |
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SECTION 4. This Act takes effect September 1, 2011. |