S.B. No. 2077 amends the qualifications for members of the board of directors of the Texas Mutual Insurance Company by updating the criteria that disqualify individuals from serving. The bill specifies that an individual cannot serve on the board if they or a related individual within the first degree of consanguinity or affinity is a licensed insurance agent, serves in any capacity for an insurer writing workers' compensation insurance in Texas, or has a financial interest in such an insurer. Additionally, the bill clarifies that individuals who receive substantial benefits from the company or are associated with insurance associations are also disqualified.

The legislation ensures that current board members are not affected by these changes, allowing them to continue serving their terms even if they do not meet the new qualifications. The act will take effect immediately if it receives a two-thirds majority vote in both houses; otherwise, it will become effective on September 1, 2025.

Statutes affected:
Introduced: Insurance Code 2054.052 (Insurance Code 2054)
Senate Committee Report: Insurance Code 2054.052 (Insurance Code 2054)
Engrossed: Insurance Code 2054.052 (Insurance Code 2054)
House Committee Report: Insurance Code 2054.052 (Insurance Code 2054)
Enrolled: Insurance Code 2054.052 (Insurance Code 2054)