Sec. 2. Subject to IC 34-13-2, IC 34-13-3, and IC 34-13-4, this chapter applies when a member of the department is sued for civil damages and:
(1) the department administratively determines that the civil action arose out of an act performed within the scope of the duties of the member; and
(2) a lack of defense of the action by the state would prejudice the construction, maintenance, or administration of state highways.