(a) Any award made or compromise or settlement against the State of Vermont agreed upon by the Attorney General shall be paid by the State Treasurer out of the appropriations of the department concerned. In the event an award is made or a compromise or settlement is agreed upon as the result of the acts or omissions of a State employee not connected with or employed by any agency, such award shall be paid by the State Treasurer out of the Treasury, and the Emergency Board shall reimburse the State Treasurer therefor from time to time.

(b) If the State elects to self-insure for liability as defined in 12 V.S.A. § 5601, any award, compromise, or settlement against the State of Vermont agreed to by the Attorney General shall be paid by the Treasurer from the liability self-insurance fund.

(c) To the extent that an award, settlement, or compromise is covered by a policy of liability insurance, payment will be governed by the terms of the policy. (Added 1961, No. 265, § 4, eff. Oct. 1, 1961; amended 1989, No. 114, § 4, eff. June 20, 1989; 1989, No. 163 (Adj. Sess.), § 4.)