Okla. Stat. tit. 51, § 51-169: Counties - Insurance

A. The governing body of any county may:

1. Insure the county against all or any part of any liability

it may incur for death, injury or disability of any person or for

damage to property, either real or personal;

2. Insure any employee of the county against all or any part of

his liability for injury or damage resulting from an act or omission

in the scope of employment;

3. Insure against the expense of defending a claim against the

county or its employee, whether or not liability exists on such

claim; or

4. Insure the county or its employee against any loss, damage

or liability as defined by Sections 702 through 708 of Title 36 of

the Oklahoma Statutes, or other forms of insurance provided for in

Title 36 of the Oklahoma Statutes.

The cost or premium of any such insurance is a proper expenditure of

the county.

As used in this subsection, "employee" means any person who has

acted in behalf of a county, whether that person is acting on a

permanent or temporary basis with or without being compensated or on

a full-time or part-time basis. Employee also includes all elected

or appointed officers, members of governing bodies of a county, and

persons appointed, and other persons designated by a county to act

in its behalf.

B. Any insurance authorized by law to be purchased, obtained or

provided by a county may be provided by:

1. Self-insurance, which may be, but is not required to be,

funded by appropriations to establish or maintain reserves for self-

insurance purposes. Any self-insurance reserve fund shall be

nonfiscal and shall not be considered in computing any levy when the

county makes its annual estimate for needed appropriations;

2. Insurance in any insurer authorized to transact insurance in

this state;

3. Insurance secured in accordance with any other method

provided by law; or

4. Any combination of insurance authorized by this section.

C. Two or more counties or public agencies, by interlocal

agreement made pursuant to Sections 1001 et seq. of Title 74 of the

Oklahoma Statutes, may provide insurance for any purpose by any one

or more of the methods specified in this section. The pooling of

self-insured reserves, claims or losses among governments as

authorized in this act shall not be construed to be transacting

insurance nor otherwise subject to the provisions of the laws of

this state regulating insurance or insurance companies. Two or more

counties may also be insured under a master policy or contract of

insurance. Premium costs may be set individually for each county or

apportioned among participating counties as provided by the master

policy or contract.