| 1 | 1 | | 88R1121 RDS-D |
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| 2 | 2 | | By: Hinojosa S.B. No. 230 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the recusal from a vote of a member of the board of |
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| 8 | 8 | | directors or a subcommittee of the board of the Texas Windstorm |
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| 9 | 9 | | Insurance Association based on the member's financial interest. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. The heading to Section 2210.109, Insurance Code, |
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| 12 | 12 | | is amended to read as follows: |
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| 13 | 13 | | Sec. 2210.109. DISCLOSURE OF CONFLICTS; RECUSAL. |
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| 14 | 14 | | SECTION 2. Section 2210.109, Insurance Code, is amended by |
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| 15 | 15 | | adding Subsection (c) to read as follows: |
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| 16 | 16 | | (c) A member of the board of directors, or a member of a |
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| 17 | 17 | | subcommittee of the board of directors that relates to underwriting |
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| 18 | 18 | | and actuarial matters, shall recuse himself or herself from a vote |
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| 19 | 19 | | on a matter by the board or subcommittee, as applicable, if the |
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| 20 | 20 | | member: |
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| 21 | 21 | | (1) is employed by an entity that may financially |
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| 22 | 22 | | benefit from the outcome of the vote; or |
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| 23 | 23 | | (2) holds a financial or personal interest in an |
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| 24 | 24 | | entity that may financially benefit from the outcome of the vote. |
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| 25 | 25 | | SECTION 3. This Act takes effect September 1, 2023. |
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