(1) Associations, corporations, limited liability companies, partnerships, trusts, and other business entities may be participants in any sponsored captive insurer formed or issued a certificate of authority under KRS 304.49-010 to 304.49-230.
(2) A sponsor may be a participant in a sponsored captive insurer.
(3) A participant need not be a shareholder of the sponsored captive insurer or any affiliate thereof.
(4) A participant shall insure only its own risks through a sponsored captive insurer.