Texas § IN.911.201 - PAYMENT OF PREMIUM OR ASSESSMENT

§ IN.911.201. PAYMENT OF PREMIUM OR ASSESSMENT

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). Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.