(1) The Kentucky Board of Education is authorized to provide medical and accident insurance for students enrolled in the state secondary area technology centers and area vocational education centers. The Department of Education may enter into a contract or contracts with one (1) or more sureties or insurance companies or their agents to provide appropriate medical and accident insurance coverage and to provide group coverage to all students enrolled in state-operated schools under its jurisdiction. The appropriate group coverage shall be issued by one (1) or more sureties or insurance companies authorized to transact business in this state, and such coverage shall be approved by the commissioner of insurance.
(2) The Kentucky Board of Education shall promulgate administrative regulations to implement the medical and accident insurance program. The Kentucky Board of Education may fix the rate of fees for all secondary students, the provisions of KRS 156.856 with respect to fees for secondary students notwithstanding, as he or she deems necessary to meet the expense in whole or in part for appropriate student medical and accident insurance.
(3) The limits of liability and other appropriate provisions for student medical and accident insurance authorized by this section shall be set by the Kentucky Board of Education.