 |
Texas Statutes (Last Updated: January 4, 2014) |
 |
INSURANCE CODE |
|
Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES |
|
Subtitle B. ORGANIZATION OF REGULATED ENTITIES |
|
Chapter 829. CONVERSION OF RECIPROCAL OR INTERINSURANCE EXCHANGE TO STOCK COMPANY THROUGH CREATION OF A MUTUAL HOLDING COMPANY |
|
Subchapter A. GENERAL PROVISIONS |
Sec. 829.005. CONFLICT OF INTEREST
-
(a) Except as provided by a conversion plan approved by the commissioner or by this section, the following individuals may not receive a fee, commission, stock distribution, stock subscription rights, or other consideration, other than that individual's usual salary or compensation for aiding, promoting, assisting, or participating in a conversion under this chapter:
(1) a director, officer, agent, or employee of a converting exchange or the exchange's attorney in fact; or
(2) the attorney in fact if the attorney in fact is an individual.
(b) Subsection (a) does not apply to consideration received in the individual's capacity as a member.
(c) This section does not prohibit the payment of reasonable fees and compensation to an attorney, accountant, or actuary for professional services performed by that person, without regard to whether the person is also a director or officer of the converting exchange or its attorney in fact.