Section 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. 6/1/2003.