2023 Colorado Revised Statutes › Title 24 - GOVERNMENT - STATE (§§ 24-1-101 — 24-116-102) › ADMINISTRATION (§§ 24-1-101 — 24-19.9-103) › Article 10 - Governmental Immunity (§§ 24-10-101 — 24-10-120) › Section 24-10-115 - Authority for public entities other than the state to obtain insurance

(1)
A public entity, other than the state, either by itself or in conjunction with any one or more public entities may:
(a)
Insure against all or any part of its liability for an injury for which it might be liable under this article;
(b)
Insure any public employee acting within the scope of his employment against all or any part of such liability for an injury for which he might be liable under this article;
(c)
Insure against the expense of defending a claim for injury against the public entity or its employees, whether or not liability exists on such claim;
(d)
Insure against all or part of its liability or the liability of a railroad for claims arising from the passenger rail operations of a public entity on property or tracks owned by, or purchased from, a railroad.
(2)
The insurance authorized by subsection (1) of this section may be provided by:
(a)
Self-insurance, which may be funded by appropriations to establish or maintain reserves for self-insurance purposes;
(b)
An insurance company authorized to do business in this state which meets all of the requirements of the division of insurance for that purpose;
(c)
A combination of the methods of obtaining insurance authorized in paragraphs (a) and (b) of this subsection (2);
(d)
Any risk management pool of public passenger rail services authorized to be created pursuant to the federal "Product Liability Risk Retention Act of 1981",
15 U.S.C. sec. 3901
et seq., as amended.
(3)
A public entity, other than the state and 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 public entity 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
, C.R.S., or such public entity 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, or both. A school district shall establish and maintain an insurance reserve fund in accordance with the provisions of section
22-45-103 (1)(e)
, C.R.S., for liability and property damage self-insurance purposes, including workers' compensation pursuant to section
8-44-204 (2)
, C.R.S., using moneys allocated thereto pursuant to the provisions of section
22-54-105 (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 administrative and legal expenses necessary for the operation of the fund and for the payment of claims against the public entity which have been settled or compromised or judgments rendered against the public entity for injury under the provisions of this article and for attorney fees and for the costs of defense of claims and to secure and pay for premiums on insurance as provided in this article.
(4)
Policies written pursuant to this section and section
24-10-116
shall insure all of the risks and liabilities arising under this article, including costs of defense, unless the public entity requests in writing and obtains lesser coverage, in which event the policy issued shall conspicuously itemize the risks and liabilities not covered.
(5)
A self-insurance fund established by a public entity which is subject to section
29-1-108
, C.R.S., shall not be construed to be unexpended funds for budgetary purposes and shall be accumulated and held over for use in subsequent years.
(6)
Repealed.
(7)
Policies written, self-insurance funds established, or risk management pools entered into by a public entity for the purpose of insuring a public entity as described in paragraph (d) of subsection (1) of this section shall maintain such levels of insurance as are sufficient to insure against the maximum liability permitted against a railroad or its indemnitor pursuant to
49 U.S.C. sec. 28103
.
L. 71: p. 1210, § 1. C.R.S. 1963: § 130-11-15. L. 77: (5) added, p. 1160, § 1, effective February 16. L. 79: (1)(a) and (1)(b) amended, p. 863, § 5, effective July 1. L. 80: (3) amended, p. 581, § 1, effective April 30. L. 86: (3), (4), and (5) R&RE and (3) amended, pp. 511, 880, 1028, §§ 2, 13, 10, effective July 1. L. 88: (3) R&RE, p. 821, § 30, effective May 24. L. 89: (6) added, p. 1004, § 5, effective October 1. L. 90: (3) amended, p. 567, § 45, effective July 1; (5) amended, p. 1435, § 2, effective 1/1/1991. L. 94: (3) amended, p. 822, § 49, effective April 27. L. 97: (6) repealed, p. 1015, § 24, effective August 6. L. 2007: (1)(d), (2)(d), and (7) added, p. 1026, §§ 3, 4, 5, effective July 1.
Subsection (6) was enacted in House Bill No. 1143, enacted by the General Assembly at its first regular session in 1989, as a conforming amendment necessitated by the authorization for the operation of the university of Colorado university hospital by a nonprofit-nonstock corporation. The Colorado Supreme Court subsequently declared House Bill No. 1143 unconstitutional in its entirety. See Colorado Association of Public Employees v. Board of Regents, 804 P.2d 138 (Colo. 1990). Senate Bill 91-225, enacted by the General Assembly at its first regular session in 1991, authorized the operation of university hospital by a newly created university of Colorado hospital authority. For further explanation of the circumstances surrounding the enactment of Senate Bill 91-225, see the legislative declaration contained in section 1 of chapter 99, Session Laws of Colorado 1991.
For authorization for state and counties to procure insurance against liability, see § 24-14-102 .