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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 G. REGULATION OF FARM MUTUAL INSURANCE COMPANY; FINANCIAL REQUIREMENTS |
Sec. 911.301. GENERAL OPERATING REQUIREMENTS
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(a) In this section, "rural property" means property located outside an area of land subject to the taxing authority of a municipality with a population of more than 2,500.
(b) A farm mutual insurance company shall:
(1) maintain a majority of the company's total insurance in force on rural property at all times the insurance is written; and
(2) operate on a regular and special assessment basis.
(c) Except as otherwise approved by the commissioner, a farm mutual insurance company may not use more than 33 percent of the company's gross income for expenses.
(d) Property that is rural property at the time the property is originally insured continues to be classified as rural property if:
(1) the policy or policies that insure the property are written by the same farm mutual insurance company; and
(2) the coverage continues in effect without lapse of coverage for more than 60 days.