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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. Section 2054.052, Insurance Code, is amended by |
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amending Subsection (b)to read as follows: |
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(b) An individual may not serve as a board member if the |
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individual or [,] another individual related to the individual |
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within the first [second] degree by consanguinity or affinity[, or |
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another individual residing in the same household with the |
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individual]: |
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(1) is licensed as an insurance agent [registered or |
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licensed under this code or is required to be registered or licensed |
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under this code]; |
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(2) serves as an employee, officer, director, |
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consultant, or in any other capacity for an insurer or an affiliate |
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of an insurer writing workers' compensation insurance in Texas[is |
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employed by or acts as a consultant to a person 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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(3) owns, controls, has a financial interest in, or |
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participates in the management of an insurer or an affiliate of an |
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insurer writing workers' compensation insurance in Texas |
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[organization registered or licensed under this code or required to |
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be registered or licensed 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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(5) is an officer, employee, or consultant of an |
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association in the field of insurance. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |