- (a) Any public or private corporation, board, association, or estate may make an application for, enter into an agreement for, or hold a policy in a mutual insurance company. An officer, shareholder, trustee, or legal representative may act on behalf of the entity for that participation.
- (b) An officer, shareholder, trustee, or legal representative of a public or private entity described by Subsection (a) may not be held personally liable on a contract of insurance executed by the person in the person's capacity as a representative of the entity under Subsection (a).
(c) The right of a corporation organized under the laws of this state to participate as a member of a mutual insurance company is:
- (1) incidental to the purpose for which the corporation was organized; and
- (2) in addition to the corporate rights or powers expressly conferred in the corporation's articles of incorporation.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.