(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.