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.
Structure Texas Statutes
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
Section 911.302. Location of Business
Section 911.304. Annual Reports Required
Section 911.305. Examination of Company
Section 911.306. Solvency Requirements