Texas Insurance Code 1131.252 – Eligible Employees or Members
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(a) The individuals eligible for insurance under the policy are:
(1) all employees of the employers and the employees of the trade association of those employers;
(2) all members of the labor union; or
(3) all of any class or classes of employees or members determined by conditions relating to their employment, to their membership in the unions, or both.
(b) A director of a corporate employer is not eligible for insurance under the policy unless the person is otherwise eligible as a bona fide employee of the corporation by performing services other than the usual duties of a director.
Terms Used In Texas Insurance Code 1131.252
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
(c) An individual proprietor or partner is not eligible for insurance under the policy unless the person is actively engaged in and devotes a substantial part of the person’s time to conducting the business of the proprietorship or partnership.