(a) An individual who is a member of the market conduct surveillance personnel has a conflict of interest, either directly or indirectly, if the individual is affiliated with the management of, has been employed by, or owns a pecuniary interest in an insurer subject to an examination conducted under this chapter.
(b) This section may not be construed to automatically preclude the individual from being:
(1) a policyholder or claimant under an insurance policy;
(2) a grantee of a mortgage or similar instrument on the individual’s residence from a regulated entity if done under customary terms and in the ordinary course of business;
(3) an investment owner in shares of regulated diversified investment companies; or
(4) a settlor or beneficiary of a blind trust into which any otherwise permissible holdings have been placed.

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Terms Used In Texas Insurance Code 751.302

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.