{"data":{"id":"us-tx/tex.-insurance-code-885.256","jurisdiction":"us-tx","citation":"Tex. Insurance Code § 885.256","heading":"INDEMNIFICATION OR REIMBURSEMENT IN RELATION TO BREACH OF DUTY PROHIBITED.","body":"(a) Except as provided by Subsection (b), a person may not be indemnified or reimbursed under Section 885.255 in relation to:\n(1) a matter in a proceeding in which the person is finally adjudged guilty of breach of a duty as a director, officer, employee, or agent of the fraternal benefit society; or\n(2) an agreement that settles:\n(A) a matter in a proceeding described by Subdivision (1); or\n(B) the threat of a proceeding involving the person's alleged breach of a duty as a director, officer, employee, or agent of a fraternal benefit society.\n(b) A fraternal benefit society may indemnify or reimburse a person in relation to a matter described by Subsection (a) only if the supreme governing body, the board of directors, or a court determines that:\n(1) the person acted in good faith for a purpose the person reasonably believed to be in or not opposed to the best interests of the society; and\n(2) in a criminal proceeding, the person had no reasonable cause to believe that the person's conduct was unlawful.\n(c) A determination by a supreme governing body or board of directors under Subsection (b) must be made by majority vote of a quorum consisting of persons who were not parties to the proceeding under review.\n(d) The termination of a proceeding by judgment, order, settlement, or conviction or on a plea of no contest does not create a conclusive presumption that a person does not meet the standard of conduct required to justify indemnification and reimbursement.\nAdded by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.","path":["INSURANCE CODE","TITLE 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES","SUBTITLE E. MUTUAL AND FRATERNAL COMPANIES AND RELATED ENTITIES","CHAPTER 885. FRATERNAL BENEFIT SOCIETIES","SUBCHAPTER F. POWERS AND DUTIES OF FRATERNAL BENEFIT SOCIETY"],"source_url":"https://statutes.capitol.texas.gov/Docs/IN/htm/IN.885.htm#885.256","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:21Z","sha256":"815a3862a493c9c9b171118be8b896aa942ad63d8a0cf81b0302e01565bc334a","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-insurance-code-885.255","next":"us-tx/tex.-insurance-code-885.257"},"notice":"GroundRules: Original legal text. Not legal advice."}