(a) A local mutual aid association or statewide mutual assessment company that has a mortuary fund and expense fund with a combined value of at least $100,000 greater than the liabilities of the combined funds may issue a life insurance policy in the same manner as a company organized under Chapter 841.
(b) An insurance policy issued as provided by Subsection (a):
(1) may not insure an individual life for more than $5,000;
(2) must be reserved as required for a company organized under Chapter 841; and
(3) may be issued only on an endowment or limited pay basis.