(A) The director may declare inactive by written approval a captive insurance company other than a risk retention group or association captive if such captive insurance company has no outstanding insurance liabilities and agrees to cease providing insurance coverage.
(B) During the period the captive insurance company is inactive, the director may by written approval:
(1) reduce the minimum free and unimpaired paid-in capital or surplus, or combination thereof, to no less than twenty-five thousand dollars;
(2) modify the minimum premium tax applicable to the captive insurance company to an amount no less than two thousand dollars and the captive insurance company shall pay no other premium taxes; and
(3) exempt the captive insurance company from the requirement to file such reports as set forth in the written approval.