(1) Except as provided in Subsections (2) and (3), a captive insurance company may not directly insure a risk other than the risk of the captive insurance company's parent or affiliated company.

(2) In addition to the risks described in Subsection (1), an association captive insurance company may insure the risk of: (a) a member organization of the association captive insurance company's association; or (b) an affiliate of a member organization of the association captive insurance company's association.

(a) a member organization of the association captive insurance company's association; or

(b) an affiliate of a member organization of the association captive insurance company's association.

(3) The following may insure a risk of a controlled unaffiliated business: (a) an industrial insured captive insurance company; (b) a protected cell; (c) a pure captive insurance company; or (d) a sponsored captive insurance company.

(a) an industrial insured captive insurance company;

(b) a protected cell;

(c) a pure captive insurance company; or

(d) a sponsored captive insurance company.

(4) To the extent allowed by a captive insurance company's organizational charter, a captive insurance company may provide any type of insurance described in this title, except: (a) workers' compensation insurance; (b) personal motor vehicle insurance; (c) homeowners' insurance; and (d) any component of the types of insurance described in Subsections (4)(a) through (c).

(a) workers' compensation insurance;

(b) personal motor vehicle insurance;

(c) homeowners' insurance; and

(d) any component of the types of insurance described in Subsections (4)(a) through (c).

(5) A captive insurance company may not provide coverage for: (a) a wager or gaming risk; (b) loss of an election; (c) the penal consequences of a crime; or (d) punitive damages.

(a) a wager or gaming risk;

(b) loss of an election;

(c) the penal consequences of a crime; or

(d) punitive damages.

(6) Notwithstanding Subsection (4), if approved by the commissioner, a captive insurance company may insure as a reimbursement a limited layer or deductible of workers' compensation coverage.