TITLE: Relating to the recusal from a vote of a member of the board of directors or a subcommittee of the board of the Texas Windstorm Insurance Association based on the member's financial interest.

SUMMARY: Relating to the recusal from a vote of a member of the board of directors or a subcommittee of the board of the Texas Windstorm Insurance Association based on the member's financial interest.

FULL TEXT:
AN ACT relating to the recusal from a vote of a member of the board of directors or a subcommittee of the board of the Texas Windstorm Insurance Association based on the member's financial interest. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The heading to Section 2210.109, Insurance Code, is amended to read as follows: Sec. 2210.109. DISCLOSURE OF CONFLICTS;RECUSAL.SECTION 2. Section 2210.109, Insurance Code, is amended by adding Subsection (c) to read as follows: (c) A member of the board of directors, or a member of a subcommittee of the board of directors that relates to underwriting and actuarial matters, shall recuse himself or herself from a vote on a matter by the board or subcommittee, as applicable, if the member: (1) is employed by an entity that may financially benefit from the outcome of the vote; or (2) holds a financial or personal interest in an entity that may financially benefit from the outcome of the vote. SECTION 3. This Act takes effect September 1, 2023.