The bill amends Section 2054.052(b) of the Insurance Code, which outlines the qualifications for members of the board of directors of the Texas Mutual Insurance Company. Key changes include the clarification 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 specifies that board members cannot receive substantial tangible benefits from the company or be affiliated with an insurance association.

The bill also ensures that current board members serving before the effective date of the Act can continue their terms without interruption. The Act will take effect immediately if it receives a two-thirds vote from both houses of the legislature; otherwise, it will take effect on September 1, 2025.

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