Texas Insurance Code
§ 911.201 — PAYMENT OF PREMIUM OR ASSESSMENT
IN § 911.201Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part F. FARM AND COUNTY MUTUAL INSURANCE COMPANIES · Ch. 911. FARM MUTUAL INSURANCE COMPANIES · Art. E. CHARGES, PREMIUMS, AND ASSESSMENTS
Statute text
View on source(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.
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Legislative history
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.