(a) In this section, "immediate family" includes parents, a spouse, children, brothers, and sisters residing in the same household.
(b) To be eligible to serve as a public representative on the board, an individual must have resided in this state during the five years preceding appointment and may not be:
(1) licensed by or subject to the regulation of the department;
(2) financially involved in an organization subject to the regulation of the department other than by ownership of an insurance policy or contract;
(3) a member of the immediate family of an individual who is financially involved in an organization subject to the regulation of the department;
(4) engaged in or employed by an entity having a contract with an organization subject to the regulation of the department;
(5) employed by, on the board of directors of, or a holder of an elective office by or under the authority of a unit of federal, state, or local government or an organization that receives a significant part of its funding from a unit of federal, state, or local government;
(6) employed by or associated with an organization formed to represent license holders of the department or organizations or individuals subject to the regulation of the department; or
(7) required to register as a lobbyist under Chapter 305, Government Code, because of activities on behalf of an organization representing the regulated industry.