(1) Any unit of local government, which for purposes of this article includes counties, municipalities, school and special districts, and every other type of local government having the power to own property and impose taxes, may insure its property against all types of risk of loss for which such insurance may be procured from insurance companies authorized to do such business in this state.
(2) The insurance authorized by subsection (1) of this section may be provided by:
Self-insurance, which may be funded by appropriations to establish or maintain reserves for self-insurance purposes;
An insurance company authorized to do business in this state which meets all of therequirements of the division of insurance for that purpose;
A combination of the methods of obtaining insurance authorized in paragraphs (a) and (b) of this subsection (2).
(3) A unit of local government other than a school district may establish and maintain an insurance reserve fund for self-insurance purposes and may include in the annual tax levy of the local government such amounts as are determined by its governing body to be necessary for the uses and purposes of the insurance reserve fund, subject to the limitations imposed by section 29-1-301. In the event that a local government has no annual tax levy, it may appropriate from any unexpended balance in the general fund such amounts as the governing body shall deem necessary for the purposes and uses of the insurance reserve fund. A school district shall establish and maintain an insurance reserve fund in accordance with the provisions of section 2245-103 (1)(e), C.R.S., using moneys allocated thereto pursuant to the provisions of section 2254-105 (2), C.R.S. The fund established pursuant to this subsection (3) shall be kept separate and apart from all other funds and shall be used only for the payment of loss of or damage to the property of the unit of local government or to secure and pay for premiums on insurance as provided in this article.
Source: L. 79: Entire article added, p. 1131, § 1, effective May 25. L. 88: (3) amended,
p. 823, § 34, effective May 24. L. 94: (3) amended, p. 823, § 52, effective April 27.
Cross references: For authority of a public entity other than the state to establish and maintain an insurance reserve fund for self-insurance purposes, see also § 24-10-115.