Texas § IN.912.202 - PAYMENT OF PREMIUM OR ASSESSMENT

§ IN.912.202. PAYMENT OF PREMIUM OR ASSESSMENT

PAYMENT OF PREMIUM OR ASSESSMENT. (a) A county 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 $2 for each $100 of insurance coverage; and (3) state the time and manner of payment of a policyholder's contingent liability established under Subdivision (2). (b) As required by its bylaws, a county mutual insurance company shall establish and levy premiums and assessments, including the contingent liability of a policyholder, for all insurance written by the company. (c) A policyholder shall pay premiums and assessments as required by the company's bylaws. (d) 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. (e) Subsection (a) does not apply to a company that meets the requirements of Section 912.308 (a)(3), but such a company is subject to Sections 883.154 , 883.155 , and 883.156 . Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.