(1) The state shall obtain insurance to:
(a) Insure itself against all or any part of any liability for an injury for which it might be liable under this article;
(b) Insure any of its public employees acting within the scope of their employment against all or any part of his liability for injury for which he might be liable under this article;
(c) Insure against the expense of defending a claim for injury against the state or its public employees, whether or not liability exists on such claim.
(2) The insurance required under subsection (1) of this section may be provided by:
(a) Self-insurance, which may be funded by appropriations to establish or maintain reserves for self-insurance purposes;
(b) An insurance company authorized to do business in this state which meets all the requirements of the division of insurance for that purpose;
(c) A combination of the methods of obtaining insurance authorized in paragraphs (a) and (b) of this subsection (2).
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