(a) Except as provided by Subsection (b), a local mutual aid association may provide only for the payment of death benefits. An association may not provide for old age benefits or benefits for accidental injury or sickness.
(b) A local mutual aid association organized before March 21, 1929, that provides for the payment of death, old age, and accident benefits may continue to provide those benefits.

(c) The policy issued by the association must clearly state the benefits provided.
(d) A local mutual aid association may not issue a policy providing for:
(1) a level premium;
(2) guaranteed benefits; or
(3) surrender of loan values.