INSURANCE CODE

TITLE 5. PROTECTION OF CONSUMER INTERESTS

SUBTITLE C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES

CHAPTER 548. INSURER INSIDER TRADING AND PROXY REGULATION

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 548.001.  PURPOSE.  (a)  The purpose of this chapter is to provide for protection of the public interest, investors, and shareholders of domestic stock insurers by:
(1)  regulating proxy solicitation by domestic stock insurers;
(2)  regulating transactions by officers, directors, and principal equity security holders of domestic stock insurers;  and
(3)  requiring appropriate reporting of those solicitations and transactions.
(b)  To that end the misuse of information by certain insiders of domestic stock insurers shall be prevented and a full and fair disclosure of all material matters relevant to the exercise of the corporate franchise of a shareholder of such an insurer will be promoted and the free exercise of that franchise will be assured.
(c)  In exercising the authority granted by this chapter to adopt rules, the commissioner shall promote the purposes of this chapter to prevent misuse of information and to encourage good faith dealing and full and fair disclosure.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.