reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies › Subchapter O. Penalties › Section 887.702. Diversion of Special Funds; Criminal Penalty

Sec. 887.702.  DIVERSION OF SPECIAL FUNDS;  CRIMINAL PENALTY.  (a)  A director, officer, agent, employee, attorney at law, or attorney in fact of an association commits an offense if the person wilfully borrows, withholds, or diverts from its purpose all or part of a special fund that:
(1)  belongs to or is under the management and control of an association;  and
(2)  is designated by law or by rule of the commissioner for a specific use.
(b)  An offense under this section is punishable by imprisonment in the Texas Department of Criminal Justice for a term of not more than 10 years or less than 2 years.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 25.124, eff. September 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies › Subchapter O. Penalties › Section 887.703. Appropriation of Money; Criminal Penalty

Sec. 887.703.  APPROPRIATION OF MONEY;  CRIMINAL PENALTY.  (a)  An officer or employee of a mutual accident insurance company commits an offense if the person uses or appropriates, or knowingly permits the use or appropriation by another of, any money belonging to the company in a manner not provided for by the law authorizing the organization of the company.
(b)  An offense under this section is punishable by imprisonment in the Texas Department of Criminal Justice for a term of not more than 10 years or less than 2 years.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 25.125, eff. September 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies › Subchapter O. Penalties › Section 887.704. Violation of Commissioner Order; Criminal Penalty

Sec. 887.704.  VIOLATION OF COMMISSIONER ORDER;  CRIMINAL PENALTY.  (a)  A director, officer, agent, employee, attorney at law, or attorney in fact of an association commits an offense if the person wilfully fails to comply with a lawful order of the commissioner.
(b)  An offense under this section is punishable by:
(1)  a fine not to exceed $500;
(2)  confinement in jail for a term not to exceed six months;  or
(3)  both the fine and confinement.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies › Subchapter O. Penalties › Section 887.705. Other Violations; Criminal Penalty

Sec. 887.705.  OTHER VIOLATIONS;  CRIMINAL PENALTY.  (a)  A director, officer, agent, employee, attorney at law, or attorney in fact of an association or other person commits an offense if the person violates a provision of this chapter other than Section 887.701, 887.702, 887.703, or 887.704.
(b)  An offense under this section is punishable by:
(1)  a fine not to exceed $500;
(2)  confinement in jail for a term not to exceed six months;  or
(3)  both the fine and confinement.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter A. General Provisions › Section 888.001. Definitions

Sec. 888.001.  DEFINITIONS.  In this chapter:
(1)  "Burial association" means an individual, firm, partnership, association, or corporation engaged in the business of providing burial or funeral benefits payable partly or wholly in merchandise or services, not to exceed $150 or the value thereof.  The term includes a burial company and a burial society.
(2)  "Insurance certificate" and "member" have the meanings assigned by Section 887.001.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter A. General Provisions › Section 888.002. Liberal Construction

Sec. 888.002.  LIBERAL CONSTRUCTION.  Sections 888.051, 888.052, 888.102(b), 888.151, 888.152, 888.153, 888.154, 888.155, 888.156, 888.157, 888.202, 888.203, and 888.204 shall be liberally construed.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter A. General Provisions › Section 888.003. Bylaws of Burial Associations

Sec. 888.003.  BYLAWS OF BURIAL ASSOCIATIONS.  The bylaws of a burial association may not contain any provision in conflict with this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter A. General Provisions › Section 888.004. Rules to Implement Purposes of Chapter

Sec. 888.004.  RULES TO IMPLEMENT PURPOSES OF CHAPTER.  The commissioner may adopt reasonable rules to implement the purposes of this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter A. General Provisions › Section 888.005. Applicability of Texas Non-Profit Corporation Act

Sec. 888.005.  APPLICABILITY OF TEXAS NON-PROFIT CORPORATION ACT.  (a)  Except to the extent of any conflict with this code, the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) applies to a burial association.  The commissioner has each power and duty of, and shall perform each act to be performed by, the secretary of state under that Act with respect to burial associations.
(b)  On advance approval of the commissioner, a burial association may pay dividends to its members.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter A. General Provisions › Section 888.006. Applicability of Other Law

Sec. 888.006.  APPLICABILITY OF OTHER LAW.  A burial association is subject to Chapter 887.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter B. Annual Assessment › Section 888.051. Imposition of Annual Assessment; Amount

Sec. 888.051.  IMPOSITION OF ANNUAL ASSESSMENT;  AMOUNT.  (a)  An annual assessment is imposed on each burial association that holds a certificate of authority to engage in the business of insurance in this state.  The assessment is in addition to any other fee that the association is required to pay.
(b)  The amount of the assessment is equal to the greater of:
(1)  the amount computed by multiplying one-half cent by the number of members in the burial association on December 31 of the applicable year;  or
(2)  $5.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter B. Annual Assessment › Section 888.052. Payment of Annual Assessment

Sec. 888.052.  PAYMENT OF ANNUAL ASSESSMENT.  (a)  Each burial association shall pay the annual assessment imposed by Section 888.051 to the department between January 1 and March 1 at the same time the association files its annual statement with the department.
(b)  Annual assessments collected under this section shall be deposited to the credit of the Texas Department of Insurance operating account.  Sections 201.001 and 201.002 apply to the assessments.
(c)  All assessments paid to the department under this section are for the use and benefit of the department to:
(1)  obtain advice, information, and knowledge relating to adequate and reasonable rates for burial associations in this state;
(2)  compile records for purposes of Subdivision (1);  and
(3)  implement Sections 888.051, 888.052, 888.102(b), 888.151, 888.152, 888.153, 888.154, 888.155, 888.156, 888.157, 888.202, 888.203, and 888.204.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.105, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter C. Insurance Certificates; Payment of Benefits › Section 888.101. Insurance Certificates Issued by Burial Association

Sec. 888.101.  INSURANCE CERTIFICATES ISSUED BY BURIAL ASSOCIATION.  (a)  Except as provided by Subsection (c), an insurance certificate issued by a burial association must provide for the payment of the benefit in specified merchandise or burial services.
(b)  The merchandise or services to be provided must be:
(1)  stated in the insurance certificate;  and
(2)  approved by the department as being of the reasonable value stated on the face of the certificate.
(c)  Subsections (a) and (b) do not apply if, at the time the insurance certificate is issued, the insured elects to have the benefit paid in cash.
(d)  An election under this section must be stated in the insurance certificate.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter C. Insurance Certificates; Payment of Benefits › Section 888.102. Payment Instead of Merchandise or Services

Sec. 888.102.  PAYMENT INSTEAD OF MERCHANDISE OR SERVICES.  (a)  If a burial association that issues an insurance certificate fails or refuses to provide the merchandise or services specified by the certificate, the association shall pay the benefit in cash.
(b)  If a burial association that issues an insurance certificate is not given the opportunity to provide the merchandise or services specified by the certificate, instead of the specified merchandise or services, the association shall pay the greater of:
(1)  the total amount paid into its mortuary fund to the credit of that certificate's account;  or
(2)  the percentage of the certificate's face value specified by the certificate.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter C. Insurance Certificates; Payment of Benefits › Section 888.103. Insurance Certificate Forms

Sec. 888.103.  INSURANCE CERTIFICATE FORMS.  An insurance certificate form used by a burial association on or after May 12, 1939, must comply with this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter D. Rates for Burial Associations › Section 888.151. Data Collection Related to Rates

Sec. 888.151.  DATA COLLECTION RELATED TO RATES.  (a)  The commissioner shall:
(1)  collect data, statistics, and information on the death rates, lapses, experiences, and other information relating to burial association rates in and outside of this state that the commissioner considers useful in determining reasonable and adequate rates for burial associations;  and
(2)  study the statistics, rates, and experiences of burial associations.
(b)  The commissioner may distribute information collected under Subsection (a)(1) to burial associations in this state.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter D. Rates for Burial Associations › Section 888.152. Adoption of Rate Schedule

Sec. 888.152.  ADOPTION OF RATE SCHEDULE.  (a)  The commissioner shall adopt a schedule of reasonable and adequate rates that a burial association may charge its members.  The schedule of rates must be adopted in compliance with Chapter 2001, Government Code.
(b)  The schedule must show the maximum and minimum rates that a burial association may charge per week, per month, per quarter, per six months, and per year, for the definite benefits at the definite ages.  The commissioner must designate the ages in convenient groups.
(c)  To ensure the adequacy and reasonableness of the rates, the commissioner may consider information gathered from an area of this state that is sufficiently large to include the varying conditions of the risks involved and during a period sufficiently long to ensure that the minimum and maximum rates authorized are:
(1)  just and reasonable as they apply to members of the public who become insured under this chapter;  and
(2)  adequate and non-confiscatory as they apply to the burial associations.
(d)  The commissioner may require:
(1)  sworn statements from any burial association in this state showing its experience in rates collected and claims paid over a reasonable period;  and
(2)  any other information the commissioner considers necessary or useful in adopting the rate schedule.
(e)  The department shall mail a copy of the adopted rate schedule to each burial association that holds a certificate of authority to engage in the business of insurance in this state.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Sec. 888.153.  NEW OR AMENDED RATE SCHEDULES.  (a)  At any time the commissioner considers appropriate, the commissioner may adopt:
(1)  a new rate schedule for burial associations;  or
(2)  an amendment to an existing rate schedule.
(b)  After the commissioner adopts a new rate schedule or an amendment to an existing rate schedule and sends a copy to the burial associations, each burial association shall use the new or amended rate schedule for individuals who the association subsequently accepts as members.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter D. Rates for Burial Associations › Section 888.154. Contracts With Experts and Consultants

Sec. 888.154.  CONTRACTS WITH EXPERTS AND CONSULTANTS.  The department may contract with experts and consultants to assist the department in exercising the department's powers and performing the department's duties under this subchapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter D. Rates for Burial Associations › Section 888.155. Retention of Burial Association's Initial Rate Schedule

Sec. 888.155.  RETENTION OF BURIAL ASSOCIATION'S INITIAL RATE SCHEDULE.  Each burial association shall retain, as part of its permanent records, the initial rate schedule adopted by the association under former Article 14.45, Insurance Code, following the amendment of that article by Chapter 593, Acts of the 66th Legislature, Regular Session, 1979.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter D. Rates for Burial Associations › Section 888.156. Change of Rates by Burial Association

Sec. 888.156.  CHANGE OF RATES BY BURIAL ASSOCIATION.  (a)  With the department's consent, a burial association may change its rates by adopting a new rate schedule and filing that schedule with the department.
(b)  The new rate schedule must be similar in all respects to the initial schedule adopted by the burial association and each new rate must be not less than the minimum or more than the maximum rate adopted by the commissioner.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter D. Rates for Burial Associations › Section 888.157. Continuation of Former Rates

Sec. 888.157.  CONTINUATION OF FORMER RATES.  (a)  A burial association that had rates adopted and in use before June 12, 1947, may continue to apply those rates to individuals who were members of the burial association on that date.
(b)  With the department's approval, the burial association may:
(1)  change the rates described by Subsection (a);  and
(2)  make the new rates correspond to the rate schedule most recently filed by the burial association with the department.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter D. Rates for Burial Associations › Section 888.158. Failure to Comply With Commissioner Rate Orders

Sec. 888.158.  FAILURE TO COMPLY WITH COMMISSIONER RATE ORDERS.  If a burial association refuses to comply with an order of the commissioner regarding rates under this subchapter, the commissioner shall consider the association insolvent.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter E. Prohibitions › Section 888.201. Unauthorized Providing of Burial or Funeral Benefits

Sec. 888.201.  UNAUTHORIZED PROVIDING OF BURIAL OR FUNERAL BENEFITS.  An individual, firm, partnership, corporation, or association may not engage in the business of providing burial or funeral benefits payable partly or wholly in merchandise or services unless the individual, firm, partnership, corporation, or association is authorized to engage in that business by this chapter, Chapter 886, Chapter 887, or another law.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter E. Prohibitions › Section 888.202. Rate Violations

Sec. 888.202.  RATE VIOLATIONS.  (a)  A burial association or an officer, agent, or employee of a burial association may not charge or collect any rate from a member of the association other than the rate applicable for the age and benefit stated in the association's rate schedule on file with the department and in force at that time.
(b)  An officer, agent, or employee of a burial association commits an offense if the officer, agent, or employee violates Subsection (a).
(c)  An officer of a burial association commits an offense if the officer knowingly permits a violation of Subsection (a).
(d)  An offense under this section is a misdemeanor punishable by a fine of not less than $50 or more than $200.
(e)  The department may revoke the certificate of authority of a burial association that violates this section.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter E. Prohibitions › Section 888.203. Connection Between Burial Associations

Sec. 888.203.  CONNECTION BETWEEN BURIAL ASSOCIATIONS.  (a)  A burial association may not be directly or indirectly connected with another burial association.
(b)  A member, director, or officer of a burial association may not be a member, director, or officer of another burial association.
(c)  A person whose spouse or employee is an officer or director of a burial association may not be an officer or director of another burial association.
(d)  A funeral director or funeral home directly or indirectly connected with a burial association or designated by a burial association as its funeral director or funeral home may not be:
(1)  connected in any manner with another burial association;  or
(2)  designated by another burial association as its funeral director or funeral home to:
(A)  provide its members with services or merchandise;  or
(B)  service its policies.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter E. Prohibitions › Section 888.204. Certain Affiliations Between Burial Associations and Funeral Homes Prohibited

Sec. 888.204.  CERTAIN AFFILIATIONS BETWEEN BURIAL ASSOCIATIONS AND FUNERAL HOMES PROHIBITED.  (a)  It is against the public policy of this state for a funeral home or an owner of an interest in a funeral home to be directly or indirectly connected or affiliated with more than one burial association.
(b)  The commissioner shall adopt rules as necessary to implement this section.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 888 - Burial Associations › Subchapter E. Prohibitions › Section 888.205. Violation of Chapter; Criminal Penalty

Sec. 888.205.  VIOLATION OF CHAPTER;  CRIMINAL PENALTY.  (a)  A director, officer, agent, employee, attorney at law, or attorney in fact of a burial association, or other person commits an offense if the person violates a provision of this chapter other than Section 888.202.
(b)  An offense under this section is a misdemeanor punishable by:
(1)  a fine not to exceed $500;
(2)  confinement in jail for a term not to exceed six months;  or
(3)  both the fine and confinement.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter A. General Provisions › Section 911.001. Limited Exemption From Insurance Laws; Applicability of Certain Laws

Sec. 911.001.  LIMITED EXEMPTION FROM INSURANCE LAWS;  APPLICABILITY OF CERTAIN LAWS.  (a)  A provision of this code, other than this chapter, does not apply to a farm mutual insurance company holding a certificate of authority under this chapter unless farm mutual insurance companies are expressly mentioned in the other law.
(b)  A law enacted after May 20, 1973, does not apply to a farm mutual insurance company unless the law states that it applies to a farm mutual insurance company.
(c)  Except to the extent of any conflict with this chapter, the following provisions apply to a farm mutual insurance company:
(1)  Subchapter A, Chapter 32;
(2)  Subchapter D, Chapter 36;
(3)  Sections 31.002(2), 32.021(c), 32.023, 32.041, 33.002, 38.001, 81.001-81.004, 201.005, 201.055, 401.051, 401.052, 401.054-401.062, 401.103-401.106, 401.151, 401.152, 401.155, 401.156, 421.001, 801.051-801.055, 801.057, 801.101, 801.102, 822.204, 841.004, 841.251, 841.252, 862.101, 1806.001, 1806.101, 1806.103(b), and 1806.104-1806.107;
(4)  Chapter 86;
(5)  Subchapter A, Chapter 401;
(6)  Subchapter B, Chapter 404;
(7)  Chapter 422;
(8)  Subchapter B, Chapter 424, other than Section 424.052, 424.072, or 424.073;
(9)  Chapter 441;
(10)  Chapter 443;
(11)  Chapter 462;
(12)  Chapter 481;
(13)  Chapter 541;
(14)  Chapter 802;
(15)  Subchapter A, Chapter 805;
(16)  Chapter 824; and
(17)  Article 1.09-1.
(d)  After hearing, the commissioner may adopt rules regarding the application of a law referred to in Subsection (c) to farm mutual insurance companies.  The department may enforce rules adopted under this subsection.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 631 (H.B. 2565), Sec. 3, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.106, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter A. General Provisions › Section 911.002. General Rulemaking Authority; Enforcement

Sec. 911.002.  GENERAL RULEMAKING AUTHORITY;  ENFORCEMENT.  After hearing, the commissioner may adopt rules to clarify and augment this chapter as determined by the commissioner to be necessary to accomplish the purposes of this chapter.  The department may enforce rules adopted under this section.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter A. General Provisions › Section 911.003. Fees

Sec. 911.003.  FEES.  (a)  The department shall charge and collect the following fees:
(1)  $10 for an amendment to a farm mutual insurance company's charter;  and
(2)  $1 for the issuance of a company's certificate of authority.
(b)  The department shall charge and the comptroller shall collect a fee of $20 for the filing of an annual statement required by the department.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter B. Organization of Farm Mutual Insurance Company; Directors › Section 911.051. Applicability of Texas Non-Profit Corporation Act

Sec. 911.051.  APPLICABILITY OF TEXAS NON-PROFIT CORPORATION ACT.  Except to the extent of any conflict with this chapter, the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) applies to a farm mutual insurance company.  The commissioner has each power and duty of, and shall perform each act to be performed by, the secretary of state under that Act with respect to farm mutual insurance companies.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter B. Organization of Farm Mutual Insurance Company; Directors › Section 911.052. Formation of Company: Incorporation Required

Sec. 911.052.  FORMATION OF COMPANY:  INCORPORATION REQUIRED.  To form a farm mutual insurance company, an association of individuals that does not hold a certificate of authority issued by the department must obtain a charter as required by this subchapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter B. Organization of Farm Mutual Insurance Company; Directors › Section 911.053. Incorporation Requirements

Sec. 911.053.  INCORPORATION REQUIREMENTS.  (a)  In this section, "separate risk" means one or more items of real property and the property's contents, if any, that is not exposed to any other property on which insurance is applied for in the association seeking the charter.
(b)  To be granted a charter as a farm mutual insurance company, an association must:
(1)  demonstrate that the association:
(A)  has existed as an association of individuals for at least three years;
(B)  has at least 100 individual members;
(C)  operates for the purpose of membership recreation or welfare under a system of subordinate lodges, locals, or districts;
(D)  does not have capital stock;
(E)  is organized and operates solely for the mutual benefit of its members and not for profit;
(F)  has a representative form of government;  and
(G)  has decided by a majority vote of the association's members to apply for a charter as a farm mutual insurance company under this chapter;  and
(2)  have:
(A)  at least 100 written applications for insurance on at least 400 separate risks;  and
(B)  an unencumbered surplus as required by Section 911.308(b).
(c)  Coverage for a risk described by Subsection (b)(2)(A) may not be in an amount that exceeds one percent of the total amount of insurance coverage to be issued by the association as stated in its application for a charter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter B. Organization of Farm Mutual Insurance Company; Directors › Section 911.054. Charter and Articles of Incorporation

Sec. 911.054.  CHARTER AND ARTICLES OF INCORPORATION.  (a)  The charter and articles of incorporation of an association that wants to form a farm mutual insurance company must state the names and post office addresses of at least 25 charter members of the company, all of whom are residents of one or more adjoining counties in this state and each of whom must:
(1)  be a member of the association;
(2)  own at least $5,000 of insurable property for which the member has applied in writing for insurance coverage from the company to be formed;  and
(3)  sign the charter and articles of incorporation.
(b)  In addition to the requirements of Subsection (a), the charter must:
(1)  be acknowledged before a notary public by at least five of the charter members described by Subsection (a);
(2)  state:
(A)  the name of the company, which must include the words "Farm Mutual" or "Farmers Mutual";
(B)  the location of the company's principal office;
(C)  the number, names, and post office addresses of each of the company's first directors, of which there must be at least five;  and
(D)  the type of property the company will insure and the risk to be insured against;  and
(3)  include any other provision the incorporators want consistent with this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter B. Organization of Farm Mutual Insurance Company; Directors › Section 911.055. Application for Permit to Solicit Insurance

Sec. 911.055.  APPLICATION FOR PERMIT TO SOLICIT INSURANCE.  (a)  At least 10 residents described by Section 911.054(a) that want to form a farm mutual insurance company may apply to the department for a permit to solicit insurance on the mutual or cooperative plan.
(b)  The application for a permit to solicit insurance must:
(1)  state:
(A)  that at least 100 individuals are members of an association described by Section 911.053(b)(1);
(B)  that the association has indicated, by majority vote, that the association wants to:
(i)  insure property of the association's members under this chapter;  and
(ii)  be chartered as a farm mutual insurance company;
(C)  the name of the company, which must include the words "Farm Mutual" or "Farmers Mutual";
(D)  the location of the company's principal office;
(E)  the risks the company proposes to insure;  and
(F)  the names and places of residence of at least 10 of the applicants;  and
(2)  be accompanied by:
(A)  affidavits of at least two of the applicants, each of whom must:
(i)  state the applicant's name and residence;  and
(ii)  verify the facts stated in the application;  and
(B)  a filing fee in the amount of $25.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter B. Organization of Farm Mutual Insurance Company; Directors › Section 911.056. Issuance of Permit to Solicit Insurance; Term

Sec. 911.056.  ISSUANCE OF PERMIT TO SOLICIT INSURANCE;  TERM.  (a)  The department shall approve or deny an application for a permit to solicit insurance under Section 911.055.  If the department finds that the application complies with this chapter, the department shall issue to the applicants a permit to solicit insurance.
(a-1)  If the department finds that the application does not comply with this chapter, the department shall deny the application.  On the applicant's request, the commissioner shall hold a hearing on a denial.  Not later than the 30th day after the date of the applicant's request for a hearing, the commissioner shall request a hearing date.
(b)  A permit issued under this section authorizes the permit holders to solicit insurance on the mutual or cooperative plan in accordance with the terms of the application.  The permit does not authorize the permit holders to:
(1)  issue insurance policies;  or
(2)  pay losses.
(c)  A permit issued under this section is valid for six months.  On receipt of an application for renewal and a fee in the amount of $10, the department may renew a permit issued under Section 911.055 as frequently and for the period as the department determines necessary.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1022 (H.B. 4291), Sec. 16, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter B. Organization of Farm Mutual Insurance Company; Directors › Section 911.057. Collection and Refund of Money From Certain Individuals Applying for Insurance

Sec. 911.057.  COLLECTION AND REFUND OF MONEY FROM CERTAIN INDIVIDUALS APPLYING FOR INSURANCE.  An association described by Section 911.053(b)(1) of which the applicants for a permit to solicit insurance are members shall hold in trust money collected from an individual applying for insurance in the association until the association is incorporated.  If the association's incorporation is not perfected, the association shall refund the money to the individual applying for the insurance.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter B. Organization of Farm Mutual Insurance Company; Directors › Section 911.058. Membership Control of Company

Sec. 911.058.  MEMBERSHIP CONTROL OF COMPANY.  (a)  The control of a farm mutual insurance company must be ultimately vested as provided by this chapter in the company's members through a supreme legislative or governing body, the members of which must be elected directly by the company's members or by delegates elected by the company's members.
(b)  Through the company's governing body, the company's members may establish local chapters, branches, lodges, or similar organizations.
(c)  The methods provided by this section for the control of a farm mutual insurance company are exclusive.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter B. Organization of Farm Mutual Insurance Company; Directors › Section 911.059. Eligibility of Board of Directors; Term

Sec. 911.059.  ELIGIBILITY OF BOARD OF DIRECTORS;  TERM.  (a)  An individual is eligible to serve as a director of a farm mutual insurance company if the individual is a policyholder who maintains insurance coverage in the amount of at least $3,000 written by the company on the individual's property.
(b)  Except as otherwise provided by the company's bylaws or constitution, a director serves for a term of one year or until the director's successor qualifies for office.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter B. Organization of Farm Mutual Insurance Company; Directors › Section 911.060. General Powers of Board of Directors

Sec. 911.060.  GENERAL POWERS OF BOARD OF DIRECTORS.  The board of directors of a farm mutual insurance company has the powers provided by:
(1)  this chapter;  and
(2)  the company's charter, constitution, and bylaws to the extent those powers do not conflict with this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter B. Organization of Farm Mutual Insurance Company; Directors › Section 911.061. Authority to Borrow Money

Sec. 911.061.  AUTHORITY TO BORROW MONEY.  (a)  The board of directors of a farm mutual insurance company, acting through its authorized officers, may borrow money in an amount determined to be necessary to pay the company's accrued or unaccrued losses.
(b)  The board may pledge as security for a loan the assets of the company, including the contingent liability of its policyholders.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter B. Organization of Farm Mutual Insurance Company; Directors › Section 911.062. Removal of Officer or Director

Sec. 911.062.  REMOVAL OF OFFICER OR DIRECTOR.  (a)  The board of directors of a farm mutual insurance company, at a meeting, may remove an officer or director of the company if, by a two-thirds majority vote of all the company's directors, the board determines that the removal of the individual is in the best interest of the company.  The board may remove an officer or director under this subsection without stating a reason for the removal.
(b)  The board may appoint one or more individuals to assume the duties and serve the unexpired term of an officer or director removed under this section.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter B. Organization of Farm Mutual Insurance Company; Directors › Section 911.063. Creation of Local Chapters and Districts

Sec. 911.063.  CREATION OF LOCAL CHAPTERS AND DISTRICTS.  (a)  A farm mutual insurance company's bylaws may provide for:
(1)  the organization of local chapters to transact the company's business;  and
(2)  the creation of districts in and for which directors may be elected.
(b)  The bylaws may also provide that delegates from the company's local chapters are the company's supreme governing body.
(c)  The company may consider the hazards against which the company insures and the company's classes of risks and territory of operation in organizing the local chapters and creating the districts.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter B. Organization of Farm Mutual Insurance Company; Directors › Section 911.064. Policyholder Meetings

Sec. 911.064.  POLICYHOLDER MEETINGS.  (a)  A farm mutual insurance company shall hold a policyholder meeting to elect directors and transact business at the time and place and in the manner prescribed by the company's bylaws.
(b)  A special meeting of a company's policyholders may be called by:
(1)  the president, the general manager, or one-third of the company's directors;  or
(2)  the commissioner.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter B. Organization of Farm Mutual Insurance Company; Directors › Section 911.065. Voting by Policyholder

Sec. 911.065.  VOTING BY POLICYHOLDER.  (a)  Each policyholder of a farm mutual insurance company is entitled to only one vote at a policyholders' meeting.
(b)  A policyholder may not vote by proxy.
(c)  A farm mutual insurance company may provide in its constitution or bylaws that a policyholder may vote electronically or by mail without making a personal appearance at a policyholders' meeting.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 1083 (H.B. 3496), Sec. 3, eff. September 1, 2017.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter B. Organization of Farm Mutual Insurance Company; Directors › Section 911.066. Authority to Prohibit Waiver of Bylaws

Sec. 911.066.  AUTHORITY TO PROHIBIT WAIVER OF BYLAWS.  A farm mutual insurance company may provide in its bylaws that a company adjuster, representative appointed by the company, or local chapter or officer or agent elected by the local chapter may not waive a provision in the company's constitution or bylaws or in a policy issued by the company.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter B. Organization of Farm Mutual Insurance Company; Directors › Section 911.067. Application for Extension of Charter for Certain Companies; Term

Sec. 911.067.  APPLICATION FOR EXTENSION OF CHARTER FOR CERTAIN COMPANIES;  TERM.  (a)  Before a farm mutual insurance company's charter expires, the company may apply to the department for an extension of the company's charter if:
(1)  the company was chartered, holding a certificate of authority, and operating before May 21, 1973, under Chapter 16, Insurance Code, as it existed on that date;  or
(2)  the company was organized and engaging in business before April 6, 1937, and the company continues to engage in business.
(b)  A farm mutual insurance company described by Subsection (a) and whose charter has expired may apply to the department to have the charter extended perpetually if the company is engaged in business in this state.
(c)  The term of the charter begins on the date that the charter is extended or, if the original charter expired before the charter is extended, the date the original charter expired.
(d)  An application for an extension must be authorized by either a two-thirds majority vote of the company's directors or by a simple majority vote of those voting at a policyholders' meeting and must:
(1)  state in full the charter to be extended;
(2)  state the period for which the charter is to be extended;  and
(3)  be signed and acknowledged by the president and secretary of the company.
(e)  A company whose charter is extended retains the rights, privileges, and immunities granted the company under the company's original charter.
(f)  The department shall charge and collect a fee of $10 for the extension of a farm mutual insurance company's charter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter C. Authority to Engage in Business in This State › Section 911.101. Authority to Engage in Business

Sec. 911.101.  AUTHORITY TO ENGAGE IN BUSINESS.  Except to the extent of any conflict with this chapter, a farm mutual insurance company must hold a certificate of authority under Section 801.051 to engage in the business of insurance in this state under this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.