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Texas Statutes (Last Updated: January 4, 2014) |
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INSURANCE CODE |
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Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES |
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Subtitle A. GENERAL PROVISIONS APPLICABLE TO INSURERS AND RELATED ENTITIES |
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Chapter 805. DIRECTORS, OFFICERS, AND OTHER INTERESTED PERSONS |
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Subchapter A. ACTIVITIES OF DIRECTORS, OFFICERS, AND SHAREHOLDERS |
Sec. 805.003. PROHIBITED ACTIVITIES
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(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.