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Texas Statutes (Last Updated: January 4, 2014) |
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INSURANCE CODE |
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Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES |
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Subtitle F. FARM AND COUNTY MUTUAL INSURANCE COMPANIES |
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Chapter 911. FARM MUTUAL INSURANCE COMPANIES |
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Subchapter E. CHARGES, PREMIUMS, AND ASSESSMENTS |
Sec. 911.201. PAYMENT OF PREMIUM OR ASSESSMENT
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(a) A farm mutual insurance company's bylaws must:
(1) state the time and manner of the levy and payment of a premium or assessment for policies written by the company;
(2) in addition to the regular premium or assessment under Subdivision (1), establish the contingent liability of a policyholder for all losses accrued while a policy is in force in the amount of at least $1 for each $100 of insurance coverage, except as provided by Subsection (b); and
(3) state the time and manner of payment of a policyholder's contingent liability established under Subdivision (2).
(b) A company's bylaws may provide for the issuance of policies without contingent liability as required by Subsection (a)(2) if the company has policyholder surplus in the amount of at least $1,000,000.
(c) As required by its bylaws, a farm mutual insurance company shall establish and levy premiums and assessments, including the contingent liability of a policyholder, for all insurance written by the company.
(d) A policyholder shall pay premiums and assessments as required by the company's bylaws.
(e) The premium or assessment for a policy shall be secured by a lien on each item of real or personal property, other than a homestead, covered by the policy, including the land on which an insured building is located. The lien remains on the property while the insured owns the property.
(f) A conservator, receiver, or liquidator of a farm mutual insurance company may not make an assessment against a policyholder for the contingent liability established under Subsection (a)(2).