reglab/statecodes huggingface dataset:
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 D. Policies and Coverage › Section 911.151. Kinds of Insurance Authorized

Sec. 911.151.  KINDS OF INSURANCE AUTHORIZED.  (a)  A farm mutual insurance company may insure property against loss or damage by:
(1)  fire, lightning, explosion, theft, windstorm, hurricane, hail, riot, civil commotion, smoke, aircraft, or land vehicles;  or
(2)  any other hazard against which any other fire or windstorm insurance company operating in this state under Chapter 862 may write insurance on property described by Subsection (b).
(b)  The company may write insurance against the hazards described by Subsection (a) on:
(1)  a rural or urban dwelling and attendant outhouses and yard buildings and all their contents for home and personal use, musical instruments and libraries, barns and ranch buildings of any description and vehicles and implements used on or about barns or ranch buildings;
(2)  agricultural products that are produced or kept on farms or ranches;
(3)  a church building, fraternal lodge hall, private or church school, or nonindustrial use building owned by a nonprofit organization, regardless of the location;
(4)  a trailer or mobile home;  and
(5)  growing crops if the insurance is reinsured by:
(A)  the Federal Crop Insurance Corporation under Section 508, Federal Crop Insurance Act (7 U.S.C. Section 1508);  or
(B)  a property and casualty insurance company that:
(i)  is authorized to write insurance in this state;  and
(ii)  has a rating by the A.M. Best Company of A- or better.
(c)  An insurance policy written by a farm mutual insurance company against loss or damage by windstorm, hurricane, or hail, as described by Subsection (a), may include coverage for:
(1)  a building or other structure that is built wholly or partially over water; and
(2)  the corporeal movable property contained in a building or structure described by Subdivision (1).
(d)  The farm mutual insurance company may impose appropriate limits of coverage and deductibles for coverage described by Subsection (c).
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 1153 (H.B. 3048), Sec. 4, eff. September 1, 2005.
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 D. Policies and Coverage › Section 911.152. Property and Hazards Against Which Company May Not Insure

Sec. 911.152.  PROPERTY AND HAZARDS AGAINST WHICH COMPANY MAY NOT INSURE.  (a)  A farm mutual insurance company may not insure:
(1)  a building, or the building's contents, with more than 40 percent of the building's floor space or more than 500 square feet of floor space, whichever is less, used for business purposes, except as provided by Section 911.151(b)(3);  or
(2)  any type of commercial or private passenger motor vehicle, except as provided by Section 911.151(b)(4).
(b)  A farm mutual insurance company may not assume or issue an insurance policy that:
(1)  indemnifies an insured for liability to a third party the insured incurs in committing a tortious act;  or
(2)  covers an insured for liability the insured incurs under a contract to maintain, hold, or store property belonging to another.
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 D. Policies and Coverage › Section 911.153. Contract Terms: Incorporation of Bylaws

Sec. 911.153.  CONTRACT TERMS:  INCORPORATION OF BYLAWS.  (a)  A farm mutual insurance company's bylaws are part of each contract between the company and an insured.
(b)  Each policy issued by the company must state that the company's bylaws are part of the contract.
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 D. Policies and Coverage › Section 911.154. Contract Terms: Adoption of Additional Provisions

Sec. 911.154.  CONTRACT TERMS:  ADOPTION OF ADDITIONAL PROVISIONS.  (a)  A farm mutual insurance company may adopt as part of the company's bylaws and insurance policies any provision contained in the standard policies of companies writing fire or windstorm insurance as adopted by the commissioner to the extent the provision applies to a farm mutual insurance company.
(b)  A company that adopts a provision as provided by Subsection (a) shall state in the company's bylaws or in each policy issued by the company that the provision has been adopted as provided by Subsection (a).
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 D. Policies and Coverage › Section 911.155. Repair or Replacement of Insured Property

Sec. 911.155.  REPAIR OR REPLACEMENT OF INSURED PROPERTY.  The company's bylaws may authorize the company to require, at its option, that all or a percentage of the money paid for a loss be used to replace or repair the damaged or destroyed property.  The requirement may apply equally to personal and real property, including personal and real property exempt from execution, such as a homestead or a building on the homestead.  The company may provide in its bylaws that the requirements of Section 862.053 do not apply to its insurance 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 F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter E. Charges, Premiums, and Assessments › Section 911.201. Payment of Premium or Assessment

Sec. 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).
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 E. Charges, Premiums, and Assessments › Section 911.202. Nonpayment of Premiums or Assessments: Filing of Action

Sec. 911.202.  NONPAYMENT OF PREMIUMS OR ASSESSMENTS:  FILING OF ACTION.  (a)  A farm mutual insurance company may bring an action in the county in which the company's home office is located against a policyholder who defaults on the payment of a premium or an assessment.
(b)  The company is entitled to judgment against the policyholder for:
(1)  delinquent premiums or assessments;
(2)  foreclosure of the lien described by Section 911.201;  and
(3)  the costs of an action, including a reasonable attorney's fee.
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 E. Charges, Premiums, and Assessments › Section 911.203. Policyholder Liability

Sec. 911.203.  POLICYHOLDER LIABILITY.  A policyholder is liable for the losses of a farm mutual insurance company only as provided by the company's constitution and bylaws, and only in proportion to the amount that the premium or assessment for the policyholder's policy bears to the total amount of premiums or assessments for all policies written by the company in the class to which the policyholder's policy belongs.
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 F. Agents › Section 911.251. Licensing and Appointment of Certain Agents

Sec. 911.251.  LICENSING AND APPOINTMENT OF CERTAIN AGENTS.  (a)  An individual or firm may not solicit, write, sign, execute, or deliver insurance policies, bind insurance risks, collect premiums, or otherwise act on behalf of a farm mutual insurance company in the capacity of an insurance agent in the solicitation or sale of crop insurance unless the individual or firm holds a license issued under Title 13.
(b)  A farm mutual insurance company may not appoint and act through an agent under Subchapter F, Chapter 4051.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.223(a), eff. Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.107, 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 G. Regulation of Farm Mutual Insurance Company; Financial Requirements › Section 911.301. General Operating Requirements

Sec. 911.301.  GENERAL OPERATING REQUIREMENTS.  (a)  In this section:
(1)  "Census year" means a year in which the United States Census Bureau conducts a federal decennial census.
(2)  "Rural property" means property located outside an area of land subject to the taxing authority of a municipality with a population of more than 6,500, adjusted in accordance with Subsection (e).
(b)  A farm mutual insurance company shall:
(1)  maintain a majority of the company's total insurance in force on rural property at all times the insurance is written;  and
(2)  operate on a regular and special assessment basis.
(c)  Except as otherwise approved by the commissioner, a farm mutual insurance company may not use more than 33 percent of the company's gross income for expenses.
(d)  Property that is rural property at the time the property is originally insured continues to be classified as rural property if:
(1)  the policy or policies that insure the property are written by the same farm mutual insurance company;  and
(2)  the coverage continues in effect without lapse of coverage for more than 60 days.
(e)  On January 1 of the second year following a census year, the population limit described by Subsection (a)(2) increases or decreases by a percentage that is equal to the percentage increase or decrease in the population of this state from the previous decennial census.
(f)  Not later than November 1 of the year following a census year, the commissioner shall:
(1)  compute the new population limit in accordance with Subsection (e); and
(2)  publish the limit on the department's Internet website.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 958 (S.B. 2008), Sec. 1, eff. September 1, 2023.
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 G. Regulation of Farm Mutual Insurance Company; Financial Requirements › Section 911.302. Location of Business

Sec. 911.302.  LOCATION OF BUSINESS.  (a)  Except as provided by Subsection (b), a farm mutual insurance company may write insurance in:
(1)  the county in which the company's home office is located at the time of incorporation and in any county adjoining the county in and for which the company is organized;
(2)  any county in which another farm mutual insurance company is not organized;  and
(3)  any county in this state if the company's reserve fund exceeds $200,000 in cash or securities in which the reserve fund of a stock fire insurance company may be invested.
(b)  This section does not apply to a farm mutual insurance company organized and operating in this state under a certificate of authority issued before May 21, 1973, under former Chapter 16 of this code.
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 G. Regulation of Farm Mutual Insurance Company; Financial Requirements › Section 911.303. Reinsurance

Sec. 911.303.  REINSURANCE.  (a)  A farm mutual insurance company may reinsure the company's risks with another company against any hazard against which the farm mutual insurance company is permitted to insure.
(b)  The farm mutual insurance company may contract for mutual or reciprocal reinsurance with another company on the mutual or cooperative plan subject to the following conditions:
(1)  the farm mutual company may assume the reinsurance on the risks of the other company only if the other company reinsures the risks of the farm mutual insurance company;  and
(2)  the farm mutual company may write or assume the reinsurance only on property that the company is authorized to insure and that is located in this state.
(c)  A farm mutual insurance company that reinsures another company's property is liable for the losses of the other company only as specified in the reinsurance contract.  The farm mutual insurance company does not become a member or partner of the other company as a result of the reinsurance.
(d)  A farm mutual insurance company may pay or collect additional assessments or premiums for the purpose of a contract described by Subsection (b).
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 G. Regulation of Farm Mutual Insurance Company; Financial Requirements › Section 911.304. Annual Reports Required

Sec. 911.304.  ANNUAL REPORTS REQUIRED.  (a)  A farm mutual insurance company shall annually prepare a written report as required by this section and submit the report to the company's policyholders.
(b)  The annual report must show:
(1)  the total amount of premiums paid during the year for the policyholders' insurance;
(2)  the company's operating expenses; and
(3)  the total amount of claims paid and the amount paid for each covered peril.
(c)  Repealed by Acts 2007, 80th Leg., R.S., Ch. 47, Sec. 2, eff. May 8, 2007.
(d)  The company shall make available to each policyholder a copy of the annual report at the time and in the manner prescribed by the company's bylaws.
(e)  A farm mutual insurance company shall make annual reports to the department as required by the commissioner or by law.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 47 (S.B. 849), Sec. 1, eff. May 8, 2007.
Acts 2007, 80th Leg., R.S., Ch. 47 (S.B. 849), Sec. 2, eff. May 8, 2007.
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 G. Regulation of Farm Mutual Insurance Company; Financial Requirements › Section 911.305. Examination of Company

Sec. 911.305.  EXAMINATION OF COMPANY.  The department shall examine each farm mutual insurance company as often as the department determines necessary.
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 G. Regulation of Farm Mutual Insurance Company; Financial Requirements › Section 911.306. Solvency Requirements

Sec. 911.306.  SOLVENCY REQUIREMENTS.  (a)  A farm mutual insurance company is solvent if:
(1)  the company's assets, including the policyholders' contingent liability for the company's losses, are reasonably sufficient to pay the company's losses according to the terms of the policies;  and
(2)  the company's required unencumbered surplus, if any, has not been impaired in excess of 16-2/3 percent of the required unencumbered surplus.
(b)  A company that is solvent as provided by this section may continue to engage in the business of 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 G. Regulation of Farm Mutual Insurance Company; Financial Requirements › Section 911.307. Reserve Requirements

Sec. 911.307.  RESERVE REQUIREMENTS.  (a)  A farm mutual insurance company's board of directors may provide for the accumulation of reserve funds.
(b)  The company shall invest the reserve funds in the same type of securities in which the reserve funds of other fire insurance companies are required to be invested by 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 F - Farm and County Mutual Insurance Companies › Chapter 911 - Farm Mutual Insurance Companies › Subchapter G. Regulation of Farm Mutual Insurance Company; Financial Requirements › Section 911.308. Surplus Requirements

Sec. 911.308.  SURPLUS REQUIREMENTS.  (a)  A farm mutual insurance company organized between January 1, 1955, and May 21, 1973, shall maintain an unencumbered surplus of $2 for each $100 of insurance in force or an unencumbered surplus of $200,000, whichever amount is less.
(b)  A farm mutual insurance company organized under this chapter on or after May 21, 1973, shall maintain an unencumbered surplus in cash of $2 for each $100 of insurance in force or an unencumbered surplus of $200,000, whichever amount is greater.
(c)  A company described by Subsection (b) shall invest the minimum unencumbered surplus as provided by Section 822.204.  The company may invest funds in excess of the minimum unencumbered surplus as provided by the provisions of Subchapter B, Chapter 424, other than Sections 424.052, 424.072, and 424.073.
(d)  A company described by Subsection (b) shall, without delay, restore the minimum unencumbered surplus if the surplus is impaired.  The department shall proceed as provided by Subchapter B, Chapter 404.
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.108, 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 912 - County Mutual Insurance Companies › Subchapter A. General Provisions › Section 912.001. Definitions

Sec. 912.001.  DEFINITIONS.  In this chapter:
(1)  "Member" includes a policyholder or another person who is insured by a county mutual insurance company.
(2)  "Policy" includes a certificate or contract of insurance, certificate of membership, or other document through which insurance is effected or evidenced.
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 912 - County Mutual Insurance Companies › Subchapter A. General Provisions › Section 912.002. Limited Exemption From Insurance Laws; Applicability of Certain Laws

Sec. 912.002.  LIMITED EXEMPTION FROM INSURANCE LAWS;  APPLICABILITY OF CERTAIN LAWS.  (a)  A county mutual insurance company is exempt from the operation of all insurance laws of this state except laws that are made applicable by their specific terms or except as specifically provided by this chapter.
(b)  A county mutual insurance company is subject to:
(1)  Sections 38.001, 401.051, 401.052, 401.054-401.062, 401.151, 401.152, 401.155, 401.156, 501.159, 501.202, 501.203, 822.204, 1806.001, 1806.101, 1806.103(b), 1806.104-1806.107, 1953.051(b), 2002.002, and 2002.005;
(2)  Subchapter A, Chapter 86;
(3)  Subchapter A, Chapter 401;
(4)  the provisions of Subchapter B, Chapter 424, other than Sections 424.052, 424.072, and 424.073;
(5)  Chapters 221, 251, 252, 254, 541, and 2210; and
(6)  Articles 5.39 and 5.40.
(c)  Rate regulation for a residential fire and allied lines insurance policy written by a county mutual insurance company is subject to Chapter 2253.  On and after December 1, 2004, rate regulation for a personal automobile insurance policy and a residential fire and allied lines insurance policy written by a county mutual insurance company is subject to Article 5.13-2 and Chapter 2251.  A county mutual insurance company is subject to Chapter 2253.  The commissioner may adopt rules as necessary to implement this subsection.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 206, Sec. 21.40(a), (b), eff. June 11, 2003;  Acts 2003, 78th Leg., ch. 209, Sec. 10, eff. Oct. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 631 (H.B. 2565), Sec. 4, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.109, eff. April 1, 2009.
Acts 2015, 84th Leg., R.S., Ch. 1137 (S.B. 189), Sec. 3, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter A. General Provisions › Section 912.003. Fees

Sec. 912.003.  FEES.  The department shall charge and collect a fee in the amount of $1 for the issuance of a county mutual insurer's certificate of authority.
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 912 - County Mutual Insurance Companies › Subchapter A. General Provisions › Section 912.004. Formation of New County Mutual Company Prohibited

Sec. 912.004.  FORMATION OF NEW COUNTY MUTUAL COMPANY PROHIBITED.  A new county mutual insurance company may not be formed under 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 912 - County Mutual Insurance Companies › Subchapter A. General Provisions › Section 912.005. Limitation on Transfer of Business to County Mutual Insurance Company

Sec. 912.005.  LIMITATION ON TRANSFER OF BUSINESS TO COUNTY MUTUAL INSURANCE COMPANY.  An insurer may not transfer more than 10 percent of the insurer's insurance policies to a county mutual insurance company without the prior approval of the commissioner.
Added by Acts 2003, 78th Leg., ch. 206, Sec. 21.405, eff. June 11, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter B. Organization of County Mutual Insurance Company; Directors › Section 912.051. Applicability of Texas Non-Profit Corporation Act

Sec. 912.051.  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 county 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 county mutual insurance companies.
(b)  On advance approval of the commissioner, a county mutual insurance company 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 F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter B. Organization of County Mutual Insurance Company; Directors › Section 912.052. Eligibility of Board of Directors; Term

Sec. 912.052.  ELIGIBILITY OF BOARD OF DIRECTORS;  TERM.  (a)  An individual is eligible to serve as a director of a county mutual insurance company if the individual is a policyholder who maintains insurance coverage in the amount of at least $1,000 written by the company on the individual's property.
(b)  Except as otherwise provided by the company's bylaws, 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 912 - County Mutual Insurance Companies › Subchapter B. Organization of County Mutual Insurance Company; Directors › Section 912.053. General Powers of Board of Directors

Sec. 912.053.  GENERAL POWERS OF BOARD OF DIRECTORS.  The board of directors of a county mutual insurance company has the powers provided by the 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 912 - County Mutual Insurance Companies › Subchapter B. Organization of County Mutual Insurance Company; Directors › Section 912.054. Authority to Borrow Money

Sec. 912.054.  AUTHORITY TO BORROW MONEY.  (a)  The board of directors of a county mutual insurance company 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 912 - County Mutual Insurance Companies › Subchapter B. Organization of County Mutual Insurance Company; Directors › Section 912.055. Charter and Articles of Incorporation

Sec. 912.055.  CHARTER AND ARTICLES OF INCORPORATION.  The charter and articles of incorporation of a county mutual insurance company must state:
(1)  the name of the company, which must include the words "County Mutual Insurance Company";
(2)  the location of the principal office of the company;  and
(3)  the number of the directors, which must be at least five.
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 912 - County Mutual Insurance Companies › Subchapter B. Organization of County Mutual Insurance Company; Directors › Section 912.057. Policyholder Meetings

Sec. 912.057.  POLICYHOLDER MEETINGS.  (a)  A county 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 912 - County Mutual Insurance Companies › Subchapter B. Organization of County Mutual Insurance Company; Directors › Section 912.058. Voting by Policyholders

Sec. 912.058.  VOTING BY POLICYHOLDERS.  (a)  Each policyholder of a county mutual insurance company is entitled to only one vote at a policyholders' meeting.
(b)  A policyholder may not vote by proxy unless the company's bylaws specifically authorize voting in that manner.
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 912 - County Mutual Insurance Companies › Subchapter B. Organization of County Mutual Insurance Company; Directors › Section 912.059. Amendment to Bylaws

Sec. 912.059.  AMENDMENT TO BYLAWS.  (a)  A majority of the members of a county mutual insurance company, either in person or by proxy when ratified by the board of directors, may amend the company's bylaws at a regular meeting or at a special meeting called for that purpose.
(b)  Notice of a regular or special meeting at which an amendment to the bylaws will be considered must be mailed or delivered personally to each member.
(c)  An amendment to the bylaws is not effective until approved by the commissioner as meeting the requirements 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 F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter B. Organization of County Mutual Insurance Company; Directors › Section 912.060. Authority to Prohibit Waiver of Bylaws

Sec. 912.060.  AUTHORITY TO PROHIBIT WAIVER OF BYLAWS.  A county mutual insurance company may provide in its bylaws that a local chapter or an officer or agent elected by the local chapter may not waive a provision of the bylaws.
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 912 - County Mutual Insurance Companies › Subchapter B. Organization of County Mutual Insurance Company; Directors › Section 912.061. Application for Extension of Charter; Term

Sec. 912.061.  APPLICATION FOR EXTENSION OF CHARTER;  TERM.  (a)  Before a county mutual insurance company's charter or extension of the charter expires, the company may apply to the department for an extension of the charter for a term of 50 years from the date the charter would otherwise expire.
(b)  The application for an extension must:
(1)  demonstrate that the application was authorized either by a two-thirds vote of the company's directors or by a majority vote at a policyholders' meeting;
(2)  state in full the charter to be extended;
(3)  state the period for which the charter is to be extended;
(4)  be signed and acknowledged by the president and secretary of the company;  and
(5)  be accompanied by a fee of $50.
(c)  A company whose charter is extended retains the rights, privileges, and immunities granted a county mutual insurance company by 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 912 - County Mutual Insurance Companies › Subchapter C. Authority to Engage in Business in This State › Section 912.101. Operation Under Certificate of Authority

Sec. 912.101.  OPERATION UNDER CERTIFICATE OF AUTHORITY.  A county mutual insurance company engages in the business of insurance under a certificate of authority issued 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 912 - County Mutual Insurance Companies › Subchapter C. Authority to Engage in Business in This State › Section 912.102. Authority to Engage in Business

Sec. 912.102.  AUTHORITY TO ENGAGE IN BUSINESS.  A county mutual insurance company may engage in the business of insurance in accordance with this chapter and other applicable laws only if:
(1)  the company was formed before September 6, 1955, and was actively engaged in the business of insurance on that date;  or
(2)  the company was formed under a permit to solicit insurance issued before September 6, 1955.
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 912 - County Mutual Insurance Companies › Subchapter D. Policies and Coverage › Section 912.151. Kinds of Insurance Authorized

Sec. 912.151.  KINDS OF INSURANCE AUTHORIZED.  (a)  A county mutual insurance company that qualifies to write casualty lines for statewide operation may write all lines of automobile insurance.  The company may not assume a risk on any one hazard that is greater than five percent of its assets, unless the company promptly reinsures the excess amount of risk.
(b)  A county mutual insurance company may insure property against loss or damage by:
(1)  fire, lightning, gas explosion, theft, windstorm, and hail or for any combination of these hazards;  or
(2)  any other hazard against which any other fire or windstorm insurance company operating in this state may write insurance on property described by Subsection (c).
(c)  Unless restricted by its charter, the company may write insurance against the hazards described by Subsection (b) on:
(1)  a rural or urban dwelling and attendant outhouses and yard buildings;
(2)  the contents, for home and personal use, of a rural or urban dwelling, an attendant outhouse, or a yard building, including a family vehicle, musical instrument, and library;
(3)  a barn or other farm, dairy, truck garden, hennery, or ranch building and any other improvement;
(4)  a vehicle, harness, implement, tool, or machinery of any description used on and about a farm, truck garden, dairy, hennery, or ranch;
(5)  fruit and products, other than growing crops, and any fowl, livestock, or domestic animals that are produced, raised, grown, kept, or used on a farm, truck garden, dairy, hennery, or ranch;
(6)  a church house, country school house, country lodge room, or country recreation hall, other than a road house or public dance hall;  and
(7)  the contents of a church house, country school house, country lodge room, or country recreation hall.
(d)  An insurance policy written by a county mutual insurance company against loss or damage by windstorm or hail, as described by Subsection (a), may include coverage for:
(1)  a building or other structure that is built wholly or partially over water; and
(2)  the corporeal movable property contained in a building or structure described by Subdivision (1).
(e)  The county mutual insurance company may impose appropriate limits of coverage and deductibles for coverage described by Subsection (d).
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 1153 (H.B. 3048), Sec. 5, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter D. Policies and Coverage › Section 912.152. Policy Forms

Sec. 912.152.  POLICY FORMS.  (a)  A county mutual insurance company is subject to:
(1)  Sections 1952.051-1952.055;
(2)  Subchapter H, Chapter 1952;
(3)  Subchapter B, Chapter 2002;
(4)  Chapter 2301; and
(5)  Articles 5.06 and 5.35.
(b)  County mutual insurance companies shall file policy forms under Subchapter B, Chapter 2301, or continue to use the standard policy forms and endorsements promulgated under former Articles 5.06 and 5.35 on notification to the commissioner in writing in the manner prescribed by those articles that those forms will continue to be used.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 206, Sec. 21.41, eff. June 11, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.110, eff. April 1, 2009.
Acts 2019, 86th Leg., R.S., Ch. 455 (H.B. 259), Sec. 2, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter D. Policies and Coverage › Section 912.153. Contract Terms: Incorporation of Bylaws

Sec. 912.153.  CONTRACT TERMS:  INCORPORATION OF BYLAWS.  (a)  A county mutual insurance company's bylaws are part of each contract between the company and an insured.
(b)  Each policy issued by the company must state that the company's bylaws are part of the contract.
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 912 - County Mutual Insurance Companies › Subchapter D. Policies and Coverage › Section 912.154. Amount of Insurance Under Multiple Hazards Policy

Sec. 912.154.  AMOUNT OF INSURANCE UNDER MULTIPLE HAZARDS POLICY.  The amount of risk or insurance coverage in a policy that insures a risk against more than one hazard is the maximum loss the county mutual insurance company may sustain under the policy at any one time, regardless of the number of hazards against which the company insures.
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 912 - County Mutual Insurance Companies › Subchapter D. Policies and Coverage › Section 912.155. Repair or Replacement of Insured Property

Sec. 912.155.  REPAIR OR REPLACEMENT OF INSURED PROPERTY.  (a)  The county mutual insurance company's bylaws may authorize the company to require, at its option, that all or a percentage of the money paid for a loss be used to replace or repair the damaged or destroyed property.  The requirement may apply equally to personal and real property, including personal and real property exempt from execution, such as a homestead or a building on the homestead.  The company may provide in its bylaws that the requirements of Section 862.053 do not apply to its insurance policies.
(b)  This section 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.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter D. Policies and Coverage › Section 912.156. Contesting Claim for Certain Purposes Prohibited

Sec. 912.156.  CONTESTING CLAIM FOR CERTAIN PURPOSES PROHIBITED.  (a)  In this section, "full payment" means payment of the full amount of a loss actually sustained on the occurrence of the contingency against which the insurance coverage is obtained, not to exceed the maximum amount stated in the policy.
(b)  A county mutual insurance company may not contest a claim:
(1)  only for delay or a captious or inconsequential reason;  or
(2)  to force a settlement for less than full payment.
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 912 - County Mutual Insurance Companies › Subchapter D. Policies and Coverage › Section 912.157. Denial of Claim: Notice Required

Sec. 912.157.  DENIAL OF CLAIM:  NOTICE REQUIRED.  (a)  A county mutual insurance company shall notify a claimant of the company's intent to deny liability on a claim not later than the 60th day after the date the company receives due proofs that the claim will not be paid.
(b)  A company that does not notify a claimant as required by Subsection (a) is presumed as a matter of law to have accepted liability on the claim.
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 912 - County Mutual Insurance Companies › Subchapter E. Charges, Premiums, and Assessments › Section 912.201. Schedule of Charges

Sec. 912.201.  SCHEDULE OF CHARGES.  A county mutual insurance company shall file with the department a schedule of the amounts the company charges a policyholder or an applicant for a policy, regardless of the term the company uses to refer to those charges, including "rate," "policy fee," "inspection fee," "membership fee," or "initial charge."  A county mutual insurance company shall file premium, expense, and loss experience data with the department in the manner prescribed by the commissioner.  An insurer shall file the schedules and data required under this section according to rules promulgated by the commissioner.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 206, Sec. 21.42, eff. June 11, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter E. Charges, Premiums, and Assessments › Section 912.202. Payment of Premium or Assessment

Sec. 912.202.  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.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter E. Charges, Premiums, and Assessments › Section 912.203. Nonpayment of Premium or Assessment: Filing of Action

Sec. 912.203.  NONPAYMENT OF PREMIUM OR ASSESSMENT:  FILING OF ACTION.  (a)  A county mutual insurance company may bring an action in the home county of the company against a policyholder who defaults on the payment of an assessment or premium.
(b)  The company is entitled to judgment against the policyholder for:
(1)  delinquent premiums or assessments;
(2)  foreclosure of the lien described by Section 912.202;  and
(3)  the costs of an action, including a reasonable attorney's fee in the amount of at least $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 F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter E. Charges, Premiums, and Assessments › Section 912.204. Policyholder Liability

Sec. 912.204.  POLICYHOLDER LIABILITY.  A policyholder is liable for the losses of a county mutual insurance company only as provided by Section 912.202 and the company's bylaws, and only in proportion to the amount that the premium or assessment for the policyholder's policy bears to the total amount of premiums or assessments for all policies written by the company in the class to which the policyholder's policy belongs.
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 912 - County Mutual Insurance Companies › Subchapter F. Agents › Section 912.251. Licensing and Appointment of Agents

Sec. 912.251.  LICENSING AND APPOINTMENT OF AGENTS.  An agent for a county mutual insurance company must be licensed and appointed as provided by Title 13.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.224(a), eff. Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.111, 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 912 - County Mutual Insurance Companies › Subchapter G. Regulation of County Mutual Insurance Company; Financial Requirements › Section 912.301. Report Regarding Condition of Company

Sec. 912.301.  REPORT REGARDING CONDITION OF COMPANY.  (a)  The commissioner may, at any time the commissioner determines advisable, compel written reports from a county mutual insurance company regarding the company's condition.
(b)  The commissioner may require that the report be verified under oath by a responsible officer of the company.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.