Relating to the qualifications of members of the board of directors of the Texas Mutual Insurance Company.

89(R) HB 4432 - House Committee Report version - Bill Text

89R21673 DNC-F

By: Dean

H.B. No. 4432

Substitute the following for H.B. No. 4432:

By: Dean

C.S.H.B. No. 4432

A BILL TO BE ENTITLED

AN ACT

relating to the qualifications of members of 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(b), Insurance Code, is amended

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
a
[
registered or
] licensed
insurance agent

[
under this code or is required to be registered or licensed under

this code
];

(2)
serves as an employee, officer, director, or
[
is

employed by or acts as a
] consultant
or in any other capacity for an

insurer writing workers' compensation insurance in this state or an

affiliate of an insurer writing workers' compensation insurance in

this state
[
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 writing workers'

compensation insurance in this state or an affiliate of an insurer

writing workers' compensation insurance in this state

[
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. Section 2054.052(b), Insurance Code, as amended

by this Act, does not affect the entitlement of a member serving on

the board of directors of the Texas Mutual Insurance Company

immediately before the effective date of this Act to continue to

serve for the remainder of the member's term.

SECTION 3. 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.