(a) An insurer may issue coverage authorized under Section 706.002 to:
(1) an individual; or
(2) a group, business, employer, association, trustee, or other entity for the benefit of its members, customers, employees, members, or beneficiaries.
(b) An entity described by Subsection (a)(2) may be a group that:
(1) is formed solely for the purpose of obtaining insurance coverage under this chapter; or
(2) has already been formed for a purpose other than for obtaining insurance coverage under this chapter and that is described by Subsection (a)(2).