(a) An association is not required to hold a certificate of authority under Section 887.101 if the association:
(1) limits its membership to:
(A) the employees and the families of employees of a particular designated firm, corporation, or individual; or
(B) borrowers of a federal agency in this state and members of the borrower’s immediate family who are living with the borrower and are not engaged in nonfarm work for their chief income;
(2) has been in existence for at least five years;
(3) is not operated for profit; and
(4) does not pay commissions.
(b) An association exempt under this section shall:
(1) make annual reports to the department, on forms provided for that purpose, showing the financial condition of the association, receipts and expenditures of the association, and any other facts required by the department; and
(2) obtain from the department a permit to engage in the business of insurance.