A participating entity may:
(1) contract for insurance, including specialized insurance for property and risks relating to the ownership, operation, and maintenance of electric facilities;
(2) contract for insurance for the use and benefit of each of the other participating entities as though the insurance was for the sole benefit of the contracting entity; and
(3) cause the rights of the other participating entities to be protected under the contract in accordance with each entity's undivided interest or entitlement under any applicable agreement between the entities.