Sec. 406.097. EXECUTIVE EMPLOYEES OF CERTAIN BUSINESS ENTITIES. (a) A sole proprietor, partner, or corporate executive officer of a business entity that elects to provide workers' compensation insurance coverage is entitled to benefits under that coverage as an employee unless the sole proprietor, partner, or corporate executive officer is specifically excluded from coverage through an endorsement to the insurance policy or certificate of authority to self-insure.
(b) The dual capacity doctrine does not apply to a corporate executive officer with an equity ownership in the covered business entity of at least 25 percent and will not invalidate the exclusion of such a corporate executive officer from coverage under Subsection (a).
(c) A sole proprietor or partner of a covered business entity or a corporate officer with an equity ownership in a covered business entity of at least 25 percent may be excluded from coverage under this section notwithstanding Section 406.096.
Added by Acts 1995, 74th Leg., ch. 980, Sec. 1.20, eff. Sept. 1, 1995.
Structure Texas Statutes
Title 5 - Workers' Compensation
Subtitle A - Texas Workers' Compensation Act
Chapter 406 - Workers' Compensation Insurance Coverage
Subchapter E. Application of Coverage to Certain Employees
Section 406.091. Exempt Employees; Voluntary Coverage
Section 406.092. Alien Employees and Beneficiaries
Section 406.093. Legally Incompetent Employees
Section 406.094. Certain Persons Licensed by Texas Real Estate Commission
Section 406.095. Certain Professional Athletes
Section 406.096. Required Coverage for Certain Building or Construction Contractors
Section 406.097. Executive Employees of Certain Business Entities
Section 406.098. Volunteer Emergency Service Members and Personnel