By: Dean H.B. No. 4432
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. Section 2054.052, Insurance Code, is amended by
amending Subsection (b)to read as follows:
(b) An individual may not serve as a board member if the
individual or [,] another individual related to the individual
within the first [second] degree by consanguinity or affinity[, or
another individual residing in the same household with the
individual]:
(1) is licensed as an insurance agent [registered or
licensed under this code or is required to be registered or licensed
under this code];
(2) serves as an employee, officer, director,
consultant, or in any other capacity for an insurer or an affiliate
of an insurer writing workers' compensation insurance in Texas[is
employed by or acts as a consultant to a person 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 insurer or an affiliate of an
insurer writing workers' compensation insurance in Texas
[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
(5) is an officer, employee, or consultant of an
association in the field of insurance.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.