A county mutual insurance company may write certain automobile and property insurance, but it may not take on more than 5% of its assets as risk on any one hazard unless it promptly reinsures the excess.
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.