87R7524 JES-F
By: Leman H.B. No. 2665
A BILL TO BE ENTITLED
AN ACT
relating to the size, terms, and election of boards of directors of
certain insurance companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 822.152(b), Insurance Code, is amended
to read as follows:
(b) The board consists of not fewer than five [seven]
directors. A director:
(1) is not required to be a shareholder unless such a
qualification is required by the articles of incorporation or
bylaws of the company; and
(2) serves until the director's successor is elected
and accepts the position.
SECTION 2. Section 822.153(b), Insurance Code, is amended
to read as follows:
(b) The shareholders of an insurance company shall meet
annually [before May 1 of each year] as provided by the company's
bylaws to elect successor directors.
SECTION 3. Section 841.153(b), Insurance Code, is amended
to read as follows:
(b) After the directors are first elected under this
section, the annual meeting must be held [before May 1 of] each year
as established by the company's bylaws. The directors serve
one-year terms beginning immediately after the election, except as
provided by Section 841.154.
SECTION 4. The heading to Section 841.154, Insurance Code,
is amended to read as follows:
Sec. 841.154. STAGGERED TERMS FOR [LARGE BOARD OF]
DIRECTORS.
SECTION 5. Section 841.154(a), Insurance Code, is repealed.
SECTION 6. The changes in law made by this Act apply only to
the election of members of the board of directors of an insurance
company who are elected on or after the effective date of this Act.
The election of members of the board of directors of an insurance
company who were elected before the effective date of this Act is
governed by the law in effect when that election was held, and that
law is continued in effect for that purpose.
SECTION 7. This Act takes effect September 1, 2021.