(1) To provide the district, trustees, and employees with liability insurance pursuant to 2-9-211 and group health and life insurance pursuant to 2-18-702, the trustees of a district may:
(a) purchase insurance coverage;
(b) participate in a district health insurance trust as defined in 20-3-366 for group health insurance; or
(c) establish a self-insurance plan for the district, trustees, and employees for liability as provided in 2-9-211 and for group health and life insurance as provided in 2-18-702.
(2) The trustees shall include the cost of coverage in the district's general fund or in any other legally available fund, including the internal service fund referenced in subsection (3).
(3) Whenever the trustees of a district establish a self-insurance plan or participate in a district health insurance trust as defined in 20-3-366, the trustees shall establish an internal service fund to account for the activities of the self-insurance plan.