(2) In addition to the risks described in Subsection (1), an association captive insurance company may insure the risk of:

1. (a) a member organization of the association captive insurance company's association; or
2. (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:

1. (a) an industrial insured captive insurance company;
2. (b) a protected cell;
3. (c) a pure captive insurance company; or
4. (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:

1. (a) workers' compensation insurance;
2. (b) personal motor vehicle insurance;
3. (c) homeowners' insurance; and
4. (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:

1. (a) a wager or gaming risk;
2. (b) loss of an election; or
3. (c) the penal consequences of a crime.

(6) Unless the punitive damages award arises out of a criminal act of an insured, a captive insurance company may provide coverage for punitive damages awarded, including through adjudication or compromise, against the captive insurance company's:

1. (a) parent; or
2. (b) affiliated company.

(7) Notwithstanding Subsection (4), if approved by the commissioner:

1. (a) a captive insurance company may insure as a reimbursement a limited layer or deductible of workers' compensation coverage; and
2. (b) an association captive insurance company that satisfies the requirements of this chapter may provide homeowners' insurance.