(a) Except as provided by this section, a captive insurance company may write any type of insurance, but may only insure the operational risks of the company’s affiliates and risks of a controlled unaffiliated business.
(b) A captive insurance company may not issue:
(1) life insurance, except to insure employee benefits that are subject to the Employee Retirement Income Security Act of 1974 (29 U.S.C. § 1001 et seq.);
(2) annuities;
(3) accident and health insurance for the company’s parent and affiliates, except to insure employee benefits that are subject to the Employee Retirement Income Security Act of 1974 (29 U.S.C. § 1001 et seq.);
(4) title insurance;
(5) mortgage guaranty insurance;
(6) financial guaranty insurance;
(7) residential property insurance;
(8) personal automobile insurance; or
(9) workers’ compensation insurance.

(c) A captive insurance company may not issue a type of insurance, including automobile liability insurance, that is required, under the laws of this state or a political subdivision of this state, as a prerequisite for obtaining a license or permit if the law requires that the liability insurance be issued by an insurer authorized to engage in the business of insurance in this state.
(d) A captive insurance company is authorized to issue a contractual reimbursement policy to:
(1) an affiliated certified self-insurer authorized under Chapter 407, Labor Code, or a similar affiliated entity expressly authorized by analogous laws of another state; or
(2) an affiliate that is insured by a workers’ compensation insurance policy with a negotiated deductible endorsement.