2005 California Government Code Sections 989-991.2 PART 6. INSURANCE

989.  As used in this part, "local public entity" means any public
entity except a state agency covered by Section 11007.4 of the
Government Code.
990.  Except for a liability which may be insured against pursuant
to Division 4 (commencing with Section 3200) of the Labor Code, a
local public entity may:
   (a) Insure itself against all or any part of any tort or inverse
condemnation liability.
   (b) Insure any employee of the local public entity against all or
any part of his liability for injury resulting from an act or
omission in the scope of his employment.
   (c) Insure, contract or provide against the expense of defending a
claim against the local public entity or its employee, whether or
not liability exists on such claim, including a claim for damages
under Section 3294 of the Civil Code or otherwise for the sake of
example or by way of punishment, where such liability arose from an
act or omission in the scope of his employment, and an insurance
contract for such purpose is valid and binding notwithstanding
Section 1668 of the Civil Code, Section 533 of the Insurance Code, or
any other provision of law.
   (d) A hospital district may participate in a reciprocal or
interinsurance exchange with the members of its medical staff as
provided in Section 1284 of the Insurance Code.
   Nothing in this section shall be construed to authorize a local
public entity to pay for, or to insure, contract, or provide for
payment for, such part of a claim or judgment against an employee of
the local entity as is for punitive or exemplary damages.
990.2.  A county may insure any officer or attache of its superior
and municipal courts against all or any part of the officer or
attache's liability for injury resulting from any act or omission in
the scope of the officer or attache's employment, and also may insure
against the expense of defending any claim against such officer or
attache, whether or not liability exists on such claim.
990.4.  The insurance authorized by this part may be provided by:
   (a) Self-insurance, which may be, but is not required to be,
funded by appropriations to establish or maintain reserves for
self-insurance purposes.
   (b) Insurance in any insurer authorized to transact such insurance
in this state.
   (c) Insurance secured in accordance with Chapter 6 (commencing
with Section 1760) of Part 2 of Division 1 of the Insurance Code.
   (d) Participation by a hospital district and its medical staff in
a reciprocal or interinsurance exchange as provided in Section 1284
of the Insurance Code.
   (e) Any combination of insurance authorized by subdivisions (a),
(b), (c), and (d).
990.6.  The cost of the insurance authorized by this part is a
proper charge against the local public entity.
990.8.  (a) Two or more local public entities, by a joint powers
agreement made pursuant to Article 1 (commencing with Section 6500)
of Chapter 5 of Division 7, may provide insurance authorized by this
part or for any other purpose by any one or more of the methods
specified in Section 990.4.  Where two or more hospital districts
have joined together to pool their self-insurance claims or losses,
any nonprofit corporation created pursuant to subdivision (p) of
Section 32121 of the Health and Safety Code, and affiliated with a
hospital district which is a party to the pool may participate in the
pool.
   (b) Two or more local public entities having the same governing
board may be coinsured under a master policy and the total premium
may be prorated among those entities.
   (c) The pooling of self-insured claims or losses among entities as
authorized in subdivision (a) of Section 990.4 shall not be
considered insurance nor be subject to regulation under the Insurance
Code.
   (d) Any liability or loss under a joint powers agreement for the
pooling of self-insured claims or losses authorized by this part and
provided pursuant to this section may, notwithstanding Section 620 of
the Insurance Code or any other provision of law, be reinsured to
the same extent and the same manner as insurance provided by an
insurer.
   (e) Where a joint powers agreement authorized by this part or
authorized pursuant to Section 6516 provides for the pooling of
self-insured claims or losses among entities, if any peril insured or
covered under contract has existed, and the joint powers authority
or other parties to the pool have been liable for any period, however
short, the agreement may provide that the party insured or covered
under contract is not entitled to the return of premiums,
contributions, payments, or advances so far as that particular risk
is concerned.
990.9.  Any city, county, city and county, or any other local public
entity with authority to provide health care services may provide
insurance or provide indemnity through self-insurance for medical or
other health-care tort claims against any person who, in good faith
and without compensation, renders voluntary care to low-income
patients within the scope of his or her practice at a community
clinic or free clinic, as those terms are defined in subdivision (a)
of Section 1204 of the Health and Safety Code, serving residents
within the jurisdiction of the local public entity, and who is
licensed under Division 2 (commencing with Section 500) of the
Business and Professions Code or under an initiative act referred to
in those provisions.  However, the insurance or indemnity provided
pursuant to this section shall not cover liability for which there is
other insurance coverage in effect.
991.  Where an enactment, other than this part, authorizes or
requires a local public entity to insure against its liability or the
liability of its employees:
   (a) The authority provided by this part to insure does not affect
such other enactment.
   (b) Such other enactment does not limit or restrict the authority
to insure under this part; but, except to the extent authorized by
Section 1251 of the Education Code, nothing in this part permits a
school district to self-insure in any case where the school district
is required to insure.
991.2.  Neither the authority provided by this part to insure, nor
the exercise of such authority, shall:
   (a) Impose any liability upon the local public entity or its
employee unless such liability otherwise exists.
   (b) Impair any defense the local public entity or its employee
otherwise may have.