KRS 183.125: Purchase of liability insurance.

(1) The cabinet may purchase necessary insurance to provide adequate protection for

the public; its authorized pilots and employees; pilots employed by other

departments of state government; aircraft owned, leased or operated by the cabinet;

aircraft owned, le ased or operated by other departments of state government; the

health and lives of persons being transported in aircraft owned, leased or operated

by authorized pilots employed by the state.

(2) The commissioner of insurance, upon recommendation of the sec retary of the

Transportation Cabinet, shall initiate and be responsible for the purchase of such

insurance. If other departments of state government desire that their pilots,

employees, aircraft and passengers shall be insured under such policy, then the

commissioner of insurance shall prorate the cost of the insurance among the

departments participating.

(3) Each policy shall contain a provision reciting that the defense of immunity of the

state against such liability shall be waived, but only to the exten t of the limits of the

policy. Judgment against the state in any case shall not exceed the limits of the

policy. The venue of action shall be as provided by the civil rules. The limits of

liability of the policy shall be determined by the commissioner of i nsurance, the

secretary of the Transportation Cabinet and the commissioners of any other

participating departments.

(4) Any policy purchased under this section, shall be purchased only from insurers

authorized to do business in this state and shall be coun tersigned by a licensed

resident agent.