(a) An association may enter into a reinsurance agreement with a legal reserve company that:
(1) is authorized to write life, health, and accident insurance in this state; and
(2) has capital or surplus of at least $100,000.
(b) A reinsurance agreement under this section is subject to the commissioner’s approval.

(c) An association may not pay more out from its mortuary fund for reinsurance under this section than is received at the time of reinsurance by the mortuary fund on the insurance certificates or members reinsured.