(1) Except as specifically modified in its authorizing statute, an independent entity is not eligible to receive coverage under the Risk Management Fund created by Section 63A-4-201 or any captive insurance company created by the risk manager. (2) If an independent entity that receives coverage under the Risk Management Fund or any captive insurance company created by the risk manager is involved in a commercial activity, the state risk manager may require that the entity: (a) procure commercial insurance coverage or provide proof of vendor's insurance coverage for the commercial activity; and (b) comply with loss prevention measures specified by the state risk manager.
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