(a) In this section, “separate risk” means one or more items of real property and the property‘s contents, if any, that is not exposed to any other property on which insurance is applied for in the association seeking the charter.
(b) To be granted a charter as a farm mutual insurance company, an association must:
(1) demonstrate that the association:
(A) has existed as an association of individuals for at least three years;
(B) has at least 100 individual members;
(C) operates for the purpose of membership recreation or welfare under a system of subordinate lodges, locals, or districts;
(D) does not have capital stock;
(E) is organized and operates solely for the mutual benefit of its members and not for profit;
(F) has a representative form of government; and
(G) has decided by a majority vote of the association’s members to apply for a charter as a farm mutual insurance company under this chapter; and
(2) have:
(A) at least 100 written applications for insurance on at least 400 separate risks; and
(B) an unencumbered surplus as required by § 911.308(b).

(c) Coverage for a risk described by Subsection (b)(2)(A) may not be in an amount that exceeds one percent of the total amount of insurance coverage to be issued by the association as stated in its application for a charter.