What type guitar is playing lying flat in front of body rather than flat up against it and is played with steel tips on fingers?

The type of guitar you’re describing is likely a lap steel guitar. This instrument is played horizontally across the player's lap, and the musician uses steel or brass bars (rather than fingers) to slide along the strings, creating a distinctive sound. The steel tips you mention are likely referring to the slides or "steel" used, which can be applied with the fingers to produce a smooth, gliding tone.