Relating to the qualifications of members of the board of directors of the Texas Mutual Insurance Company.

Contracts

• Corporate Bylaws: TMIC must amend corporate bylaws to reflect the reduced conflict-of-interest scope mandated by the new statute.
• Vendor Agreements: No impact on standard Master Service Agreements (MSAs) or policyholder contracts.

Hiring/Training

• Board Vetting Protocols: Nominating committees must revise screening criteria. You must stop screening for second-degree relatives (siblings, grandparents) and "household residents." Screening is now restricted to first-degree relatives (parents, spouses, children).
• Competitor Analysis: Vetting must now specifically target relationships with insurers writing workers' compensation in Texas, rather than the previous, broader restriction on any insurer licensed under the code.

Reporting & Record-Keeping

• Director Disclosure Questionnaires: Update annual disclosure forms to remove obsolete "household residency" questions and align familial definitions with the new statutory standard.
• Candidate Affidavits: New nominees must sign updated affidavits confirming eligibility under the revised Section 2054.052.

Fees & Costs

• No new state fees or operational costs are associated with this legislation.