Tex.
Ins. Code Section 911.201
Payment of Premium or Assessment
(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).
Source:
Section 911.201 — Payment of Premium or Assessment, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.911.htm#911.201 (accessed May 4, 2024).
