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A BILL TO BE ENTITLED
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AN ACT
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relating to the recusal from a vote of a member of the board of |
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directors or a subcommittee of the board of the Texas Windstorm |
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Insurance Association based on the member's financial interest. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 2210.109, Insurance Code, |
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is amended to read as follows: |
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Sec. 2210.109. DISCLOSURE OF CONFLICTS; RECUSAL. |
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SECTION 2. Section 2210.109, Insurance Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) A member of the board of directors, or a member of a |
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subcommittee of the board of directors that relates to underwriting |
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and actuarial matters, shall recuse himself or herself from a vote |
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on a matter by the board or subcommittee, as applicable, if the |
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member: |
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(1) is employed by an entity that may financially |
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benefit from the outcome of the vote; or |
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(2) holds a financial or personal interest in an |
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entity that may financially benefit from the outcome of the vote. |
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SECTION 3. This Act takes effect September 1, 2023. |