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