The bill 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. Specifically, it prohibits individuals from serving on the board if they or a relative within the first degree by 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. The bill also clarifies that individuals who receive substantial benefits from the company or are associated with insurance associations are disqualified.

Additionally, the bill 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 upon receiving a two-thirds vote from both houses of the legislature; otherwise, it will become effective on September 1, 2025.

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