The Department of Transportation may, for the use and benefit of the state, its officers, agents or employees and of the general public, carry public liability insurance if ferries mentioned in ORS 384.405 are owned and operated by the state. The department shall require such public liability insurance if the ferry service is provided under contract with others. In addition to such public liability insurance the department may require such other insurance as in the departments judgment the interest of the state and the general public require.
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