Tex. Insurance Code § 841.259

This is the official text of Tex. Insurance Code § 841.259, part of Texas’s Insurance Code — regulates insurance companies and the policies they sell.

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§ 841.259. ACTIVITIES OF DIRECTORS AND OFFICERS.

Official statutory text

(a) A director or officer of an insurance company may not:

(1) receive money or another valuable thing for negotiating, procuring, recommending, or aiding in a purchase or sale of property by or a loan from the company; or

(2) have a pecuniary interest, as a principal, coprincipal, agent, or beneficiary, in a purchase, sale, or loan described by Subdivision (1).

(b) This section does not prohibit:

(1) a life insurance company from making a loan to a policyholder in an amount that is not greater than the reserve value of the policy; or

(2) a transaction, purchase, sale, or loan approved by the commissioner under Subchapter A of Chapter 805 or Chapter 823.

Status: in_force · Read it on the official government site

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