Bill > HB4432

This bill modifies the qualifications for members of the board of directors of the Texas Mutual Insurance Company by making several key changes to the existing eligibility requirements. The bill narrows the definition of familial relationships that would disqualify a potential board member, changing the restriction from relatives within the second degree to those within the first degree by consanguinity or affinity. It also refines the language around professional conflicts of interest, specifically focusing on individuals who are licensed insurance agents, work as employees, officers, directors, consultants, or have financial interests in workers' compensation insurers or their affiliates. The bill clarifies that board members cannot receive substantial tangible benefits from the company or department, and cannot be officers, employees, or consultants of insurance associations. Importantly, the bill includes a grandfather clause that allows current board members to complete their existing terms, and it will take effect either immediately upon receiving a two-thirds vote in the legislature or on September 1, 2025, if it does not receive the immediate voting threshold.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4432