By: Elkins H.B. No. 3247
A BILL TO BE ENTITLED
AN ACT
relating to the board of directors of the Texas Mutual Insurance
Company.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Amend Section 2054.052 to read as follows:
Sec. 2054.052. QUALIFICATIONS. (a) Each board member must
be a resident of this state.
(b) An individual may not serve as a board member if the
individual or the individual's spouse [, another individual related
to the individual within the second degree by consanguinity or
affinity, or another individual residing in the same household with
the individual]:
(1) is registered or licensed under this code or is
required to be registered or licensed under this code;
(2) is employed by or acts as an insurance [a]
consultant to a person, or has a controlling financial interest in
an organization, registered or licensed under this code or required
to be registered or licensed under this code;
(3) [owns, controls, has a financial interest in, or
participates in the management of an organization registered or
licensed under this code or required to be registered or licensed
under this code;
[(4)] receives a substantial tangible benefit from the
company or the department; or
(4) [(5)] is an officer, employee, or consultant of an
association in the field of insurance.
(c) Subsection (b) does not prohibit an individual from
serving as a board member if the individual is only a policyholder
or a consumer of insurance or insurance products.
[(d) An individual who is ineligible to serve on the board
under Subsection (b) may not serve as a board member until the first
anniversary of the date the condition that makes the individual
ineligible ends.]
SECTION 2. Amend Section 2054.103(b), Insurance Code, to
read as follows:
(b) The president must have proven successful experience as
an executive at the general management level in [the] business [of
insurance].
SECTION 3. Section 2054.059(b), Insurance Code, is amended
to read as follows:
(b) A special meeting may be called by any two board members
on five [two] days' notice.
SECTION 4. This Act takes effect September 1, 2011.