Texas § 805.004 ACTIVITIES NOT PROHIBITED.

Texas Statutes

§ 805.004 — ACTIVITIES NOT PROHIBITED.

Texas § 805.004

Code INInsurance Code

This text of Texas § 805.004 (ACTIVITIES NOT PROHIBITED.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Insurance Code Code Ann. § 805.004 (2026).

Text

Sec. 805.004. ACTIVITIES NOT PROHIBITED. This subchapter does not prohibit:

(1)a director, officer, or major shareholder of an insurer from:

(A)becoming a policyholder of the insurer and exercising the usual rights of a policyholder;

(B)participating as beneficiary in a pension plan, deferred compensation plan, profit-sharing or bonus plan, stock option plan, or similar plan adopted by the insurer and for which the director, officer, or major shareholder may be eligible under the terms of the plan;

(C)receiving a salary, bonus, or other remuneration for a service rendered to the insurer as an employee of the insurer and not in violation of another provision of this code; or

(D)entering into an arms-length transaction with the insurer if:

(i)the transaction is not prohibited by anothe

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Sec. 805.004. ACTIVITIES NOT PROHIBITED. This subchapter does not prohibit:
(1) a director, officer, or major shareholder of an insurer from:
(A) becoming a policyholder of the insurer and exercising the usual rights of a policyholder;
(B) participating as beneficiary in a pension plan, deferred compensation plan, profit-sharing or bonus plan, stock option plan, or similar plan adopted by the insurer and for which the director, officer, or major shareholder may be eligible under the terms of the plan;
(C) receiving a salary, bonus, or other remuneration for a service rendered to the insurer as an employee of the insurer and not in violation of another provision of this code; or
(D) entering into an arms-length transaction with the insurer if:
(i) the transaction is not prohibited by another statute; and
(ii) the commissioner approves the transaction before the transaction is made;
(2) a director of an insurer from:
(A) performing professional services not required of a director by law; or
(B) receiving director's fees or reimbursement for an expense incurred in the performance of a duty as a director;
(3) a transaction within an insurance holding company system by an insurer with its holding company, subsidiary, or affiliate that:
(A) is not prohibited by law;
(B) meets the test of being fair and proper; and
(C) is regulated by another statute;
(4) a transaction or arrangement that:
(A) is not prohibited by law; and
(B) meets the test of being fair and proper as prescribed by rules adopted by the commissioner; or
(5) the approval and payment of lawful dividends to policyholders and shareholders.
SUBCHAPTER B. CERTAIN PAYMENTS BY DIRECTORS, OFFICERS, AND TRUSTEES