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A BILL TO BE ENTITLED
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AN ACT
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relating to the management of the Texas Mutual Insurance Company. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2054.052(b), Insurance Code, is amended |
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to read as follows: |
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(b) An individual may not serve as a board member if the |
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individual, another individual related to the individual within the |
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second degree by consanguinity or affinity, or another individual |
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residing in the same household with the individual: |
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(1) is registered, certified, or licensed under this |
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code, or is required to be registered, certified, or licensed under |
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this code, as an insurer, an agent, an insurance adjuster, a |
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workers' compensation health care network, or a third-party |
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administrator and in that capacity transacts the business of |
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workers' compensation insurance; |
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(2) is employed by or acts as a consultant on matters |
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relating to workers' compensation insurance to a person, or has a |
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controlling financial interest in an organization, that is |
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registered, certified, or licensed under this code, or required to |
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be registered, certified, or licensed under this code, as an |
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insurer, an agent, an insurance adjuster, a workers' compensation |
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health care network, or a third-party administrator and in that |
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capacity transacts the business of workers' compensation |
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insurance; |
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(3) [owns, controls, has a financial interest in, or
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participates in the management of an organization registered or
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licensed under this code or required to be registered or licensed
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under this code;
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[(4)] receives a substantial tangible benefit from the |
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company or the department; or |
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(4) [(5)] is an officer, employee, or consultant of an |
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association in the field of workers' compensation insurance. |
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SECTION 2. Section 2054.059(b), Insurance Code, is amended |
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to read as follows: |
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(b) A special meeting may be called by any two board members |
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on five [two] days' notice. |
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SECTION 3. Section 2054.103(b), Insurance Code, is amended |
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to read as follows: |
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(b) The president must have proven successful experience, |
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as an executive at the general management level, in [the business
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of] insurance, general business, or actuarial principles. |
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SECTION 4. Section 2054.052(d), Insurance Code, is |
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repealed. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |