Texas Insurance Code 841.252 – Payments to Officers, Directors, and Employees
Current as of: 2024 | Check for updates
|
Other versions
(a) Unless first authorized by a vote of a domestic insurance company’s board of directors or a committee of the board that has the duty to authorize the payments, the company may not pay any compensation or emolument in an amount that, when added to any compensation or emolument paid to the person by an affiliated domestic insurance company, exceeds $150,000 in any year to an individual, firm, or corporation, including an officer or director of the company.
(b) Subsection (a) does not prevent a domestic insurance company from contracting with its agents for the payment of renewal commissions.
Terms Used In Texas Insurance Code 841.252
- 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.
- 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
- Year: means 12 consecutive months. See Texas Government Code 311.005
(c) The shareholders of a domestic insurance company may authorize the creation of one or more plans for the payment of pensions, retirement benefits, or group insurance for the company’s officers and employees. The shareholders may delegate to the company’s board of directors the power and duty to prepare, effect, finally approve, administer, and amend a plan.
(d) A mutual insurance company, acting through the company’s policyholders, may exercise the same discretion, and has the same powers, privileges, and rights, as are conferred on a domestic insurance company under Subsection (c).