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(1) The state shall secure the payment of workers' compensation benefits for its employees:
(a) by:
(i) insuring, and keeping insured, the payment of this compensation with an insurer authorized under Title 31A, Insurance Code, to transact the business of workers' compensation insurance in this state; or
(ii) paying direct compensation as a self-insured employer in the amount, in the manner, and when due as provided for in this chapter or Chapter 3, Utah Occupational Disease Act;
(b) in accordance with Title 63A, Chapter 4, Risk Management; and
(c) subject to Subsection (2).
(2)
(a) If the state determines to secure the payment of workers' compensation benefits for its employees by paying direct compensation as a self-insured employer in the amount, in the manner, and due as provided for in this chapter or Chapter 3, Utah Occupational Disease Act, the state is:
(i) exempt from Section 34A-2-202.5 and Subsection 34A-2-704(14); and
(ii) required to pay a premium assessment as provided in Section 34A-2-202.
(b) If the state chooses to pay workers' compensation benefits for its employees through insuring under Subsection (1)(a)(i), the state shall obtain that insurance in accordance with Title 63G, Chapter 6a, Utah Procurement Code.