Okla. Stat. tit. 51, § 51-167

A. The governing body of any municipality may:

1. Insure the municipality 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 municipality 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

municipality or its employee, whether or not liability exists on

such claim; or

4. Insure the municipality 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 municipality.

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

acted in behalf of a municipality, 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

municipality, and persons appointed, and other persons designated by

a municipality to act in its behalf.

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

provided by a municipality 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

municipality makes its annual estimate for needed appropriations;

Oklahoma Statutes - Title 51. Officers Page 120

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. Notwithstanding any other provision of law, two or more

municipalities or public agencies who are affiliated in an insurance

program which was originated prior to January 1, 2006, by interlocal

agreement made pursuant to Section 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

municipalities may also be insured under a master policy or contract

of insurance. Premium costs may be set individually for each

municipality or apportioned among participating municipalities as

provided by the master policy or contract.