2009 California Labor Code - Section 6130-6131 :: Chapter 3. Insurance

6130.  In lieu of direct payments pursuant to Chapter 2 of this
division, any State agency may obtain by insurance from the State
Compensation Insurance Fund, if the fund accepts the risk when the
application for insurance is made, otherwise from any other insurer,
hospitalization, medical treatment, and indemnity, including death
benefits, on behalf of its employees and of their dependents for
injury or death suffered from accident, irrespective of fault,
occurring in the course of and arising out of the employment with
such State agency, where the injury or death is not compensable under
the provisions of Division 4 of this code.

6131.  The premium for such insurance shall be a proper charge
against any moneys appropriated for the support of or expenditure by
such State agency. In case such State agency is supported by or
authorized to expend moneys appropriated out of more than one fund,
it may, with the approval of the Director of Finance, determine the
proportion of such premium to be paid out of each such fund.