| 2 | 4 | | |
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| 3 | 5 | | |
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| 4 | 6 | | A BILL TO BE ENTITLED |
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| 5 | 7 | | AN ACT |
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| 6 | 8 | | relating to the board of directors of the Texas Mutual Insurance |
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| 7 | 9 | | Company. |
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| 8 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 11 | | SECTION 1. Section 2054.052, Insurance Code, is amended by |
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| 10 | 12 | | amending Subsection (b)to read as follows: |
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| 11 | 13 | | (b) An individual may not serve as a board member if the |
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| 12 | 14 | | individual or [,] another individual related to the individual |
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| 13 | 15 | | within the first [second] degree by consanguinity or affinity[, or |
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| 14 | 16 | | another individual residing in the same household with the |
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| 15 | 17 | | individual]: |
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| 16 | 18 | | (1) is licensed as an insurance agent [registered or |
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| 17 | 19 | | licensed under this code or is required to be registered or licensed |
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| 18 | 20 | | under this code]; |
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| 19 | 21 | | (2) serves as an employee, officer, director, |
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| 20 | 22 | | consultant, or in any other capacity for an insurer or an affiliate |
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| 21 | 23 | | of an insurer writing workers' compensation insurance in Texas[is |
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| 22 | 24 | | employed by or acts as a consultant to a person registered or |
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| 23 | 25 | | licensed under this code or required to be registered or licensed |
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| 24 | 26 | | under this code]; |
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| 25 | 27 | | (3) owns, controls, has a financial interest in, or |
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| 26 | 28 | | participates in the management of an insurer or an affiliate of an |
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| 27 | 29 | | insurer writing workers' compensation insurance in Texas |
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| 28 | 30 | | [organization registered or licensed under this code or required to |
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| 29 | 31 | | be registered or licensed under this code]; |
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| 30 | 32 | | (4) receives a substantial tangible benefit from the |
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| 31 | 33 | | company or the department; or |
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| 32 | 34 | | (5) is an officer, employee, or consultant of an |
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| 33 | 35 | | association in the field of insurance. |
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| 34 | 36 | | SECTION 2. This Act takes effect immediately if it receives |
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| 35 | 37 | | a vote of two-thirds of all the members elected to each house, as |
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| 36 | 38 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 37 | 39 | | Act does not receive the vote necessary for immediate effect, this |
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| 38 | 40 | | Act takes effect September 1, 2025. |
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