(a) Except as provided by Subsection (b), under the excess insurance coverage, the pool shall pay any portion of a claim against a public entity and the entity's officers and employees that:
(1) exceeds $1 million; and
(2) is finally determined or settled or is included in a final judgment of a court.
(b) The amount paid by the pool under this section may not exceed the amount the board determines is actuarially sound for the pool.
(c) The pool may participate in evaluating or defending a claim made under the insurance coverage.