§ 31. The insurance contract. 1. The provisions of subdivisions one, two, four, five and seven of section fifty-four of the workmen's compensation law, in relation to the insurance contract, which are not inconsistent with this chapter, shall be applicable as fully as if set forth herein. The insurance carrier shall be a party to all hearings and determinations by the workmen's compensation board or the courts and shall have the right to raise or plead any defense available to the political subdivision liable in the first instance for the benefits to be paid and provided by this chapter.

2. An insurance contract to indemnify against liability imposed by this chapter originally issued to take effect on or after March first, nineteen hundred sixty-two, and any renewal thereof, (1) shall be a separate and distinct contract, (2) shall not be attached as an endorsement or rider to, or in any other way form a part of, a workmen's compensation insurance contract, (3) shall not have attached thereto any endorsement or rider covering any liability under the workmen's compensation law and (4) shall not be on a contract form used by the insurance carrier for the purpose of insuring employers against liabilities imposed by the workmen's compensation law, or is attached to any such form as an endorsement or rider.

3. An insurance contract to indemnify against liability imposed by this chapter originally issued to take effect prior to March first, nineteen hundred sixty-two, shall not be renewed to continue in effect on or after March first, nineteen hundred sixty-three, if (1) it is attached as an endorsement or rider to, or in any other way forms a part of, a workmen's compensation insurance contract, (2) it has attached thereto any endorsement or rider covering liability under the workmen's compensation law or (3) it is on a contract form used by the insurance carrier for the purpose of insuring employers against liabilities imposed by the workmen's compensation law, or is attached to any such form as an endorsement or rider.

A contract of insurance indemnifying against the liability imposed by this chapter issued by an insurance carrier to a county or a town and in force on or after the first day of July, nineteen hundred sixty-one, shall contain a provision reading as follows: "This contract does not provide (1) any coverage under the Workers' Compensation Law or the Volunteer Firefighters' Benefit Law for which any fire district would be liable under such laws, (2) any workers' compensation benefits for fire district officers and employees for which any fire district would be liable under the Workers' Compensation Law, or (3) any volunteer firefighters' benefits for any volunteer firefighters for which any fire district would be liable under the Volunteer Firefighters' Benefit Law. The foregoing provision does not apply in relation to volunteer firefighters' benefit coverage and volunteer firefighters' benefits provided for and in relation to the following named fire districts which have expressly requested coverage under this contract pursuant to the provisions of section thirty-two of the Volunteer Firefighters' Benefit Law, to wit: (If there are no exceptions, enter 'No exceptions'). The term 'fire districts', as used in this provision, does not include the fire protection districts and fire alarm districts mentioned in sections one hundred eighty-three and one hundred eighty-four of the Town Law."