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A BILL TO BE ENTITLED
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AN ACT
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relating to the size, terms, and election of boards of directors of |
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certain insurance companies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 822.152(b), Insurance Code, is amended |
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to read as follows: |
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(b) The board consists of not fewer than five [seven] |
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directors. A director: |
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(1) is not required to be a shareholder unless such a |
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qualification is required by the articles of incorporation or |
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bylaws of the company; and |
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(2) serves until the director's successor is elected |
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and accepts the position. |
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SECTION 2. Section 822.153(b), Insurance Code, is amended |
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to read as follows: |
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(b) The shareholders of an insurance company shall meet |
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annually [before May 1 of each year] as provided by the company's |
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bylaws to elect successor directors. |
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SECTION 3. Section 841.153(b), Insurance Code, is amended |
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to read as follows: |
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(b) After the directors are first elected under this |
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section, the annual meeting must be held [before May 1 of] each year |
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as established by the company's bylaws. The directors serve |
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one-year terms beginning immediately after the election, except as |
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provided by Section 841.154. |
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SECTION 4. The heading to Section 841.154, Insurance Code, |
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is amended to read as follows: |
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Sec. 841.154. STAGGERED TERMS FOR [LARGE BOARD OF] |
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DIRECTORS. |
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SECTION 5. Section 841.154(a), Insurance Code, is repealed. |
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SECTION 6. The changes in law made by this Act apply only to |
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the election of members of the board of directors of an insurance |
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company who are elected on or after the effective date of this Act. |
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The election of members of the board of directors of an insurance |
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company who were elected before the effective date of this Act is |
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governed by the law in effect when that election was held, and that |
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law is continued in effect for that purpose. |
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SECTION 7. This Act takes effect September 1, 2021. |