Texas Insurance Code
§ 805.003 — PROHIBITED ACTIVITIES
IN § 805.003Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part A. GENERAL PROVISIONS APPLICABLE TO INSURERS AND RELATED ENTITIES · Ch. 805. DIRECTORS, OFFICERS, AND OTHER INTERESTED PERSONS · Art. A. ACTIVITIES OF DIRECTORS, OFFICERS, AND SHAREHOLDERS
Statute text
View on source(a)A director, officer, or major shareholder of an insurer may not:
(1)except as provided by this subchapter, directly, indirectly, or through a substantial interest in another corporation, firm, or business unit receive money or another thing of value for negotiating, procuring, recommending, or aiding in a purchase, sale, or exchange of property or a loan from the insurer or its subsidiary;
(2)directly, indirectly, or through a substantial interest in another corporation, firm, or business unit have a pecuniary interest in a purchase, sale, exchange, or loan described by Subdivision (1) as a principal, co-principal, agent, or beneficiary; or
(3)directly or indirectly accept a loan or guarantee described by Subsection (b).
(b)An insurer may not directly, indirectly, or through its subsidiary make a loan to or guarantee the financial obligation of a director, officer, or major shareholder of an insurer.
Legislative history
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.