(1) A county or city or urban-county government and any board, commission, agency or authority of a county, city or urban-county government may expend funds necessary to insure any of its employees, officials and property against any liability or property damage arising out of an act or omission committed in the scope and course of performing legal duties.
(2) A county fee officer and his deputies and assistants may be insured pursuant to subsection (1) of this section, or the officer may expend excess fees to insure himself and his deputies and assistants against any liability arising out of an act or omission committed in the scope and course of performing legal duties.
(3) Any parties eligible to expend funds for insurance pursuant to this section may associate, pursuant to KRS 65.210 to 65.300, for the purpose of insuring themselves against any liability or property damage.
(4) An association of governmental units formed for the purpose of providing insurance to the participating members may act on behalf of and with the approval of the participating governmental units to borrow money and issue revenue bonds to fund the costs of providing the insurance. Revenue bonds issued pursuant to the authority granted in this subsection shall be issued in accordance with KRS 65.270.