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Current as of January 01, 2024 | Updated by Findlaw Staff
(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.
Cite this article: FindLaw.com - Texas Insurance Code - INS § 805.003. Prohibited Activities - last updated January 01, 2024 | https://codes.findlaw.com/tx/insurance-code/ins-sect-805-003/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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