(a) The association, a member of the governing committee, or an employee of the association is not personally liable for:
(1) an act performed in good faith within the scope of the person‘s authority as determined under this chapter or the plan of operation; or
(2) damages occasioned by the person’s official act or omission except an act or omission that is corrupt or malicious.
(b) The association shall provide counsel to defend an action brought against a member of the governing committee or an employee because of the person’s official act or omission regardless of whether the person has terminated service with the association when the action is instituted.

Terms Used In Texas Insurance Code 2151.056

  • Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • 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) This section is cumulative of and does not affect or modify a common law or statutory privilege or immunity.