§ 39-01-08 — State, political subdivisions, and International Peace Gardens authorized to carry insurance on vehicles - Waiver of immunity to extent only of insurance purchased

carry insurance on vehicles - Waiver of immunity to extent only of insurance purchased.
1. The state or any department, agency, or bureau, as well as any county, city, or other
political subdivision including townships, school districts, and park districts, and any
entity located upon the international boundary line between the United States of
America and Canada used and maintained as a memorial to commemorate the
long-existing relationship of peace and good will between the people and the
governments of the United States of America and Canada and to further international
peace among the nations of the world, using or operating motor vehicles and aircrafts,
may carry insurance for their own protection and for the protection of any employees
from claims for loss or damage arising out of or by reason of the use or operation of
the motor vehicle or aircraft, whether the vehicle or aircraft at the time the loss or
damage in question occurred was being operated in a governmental undertaking or
otherwise. If a premium savings will result therefrom, the insurance policy may be
taken out for more than one year, but in no event beyond a period of five years.
2. If insurance is purchased pursuant to subsection 1, then the purchaser waives its
immunity to suit only to the extent of allowing a determination of liability to the extent of
the waiver of the immunity against liability described in subsection 3.
3. If insurance is purchased pursuant to subsection 1, then the purchaser waives its
immunity against liability only to the types of its insurance coverage and only to the
extent of the policy limits of the coverage. Provided, the purchaser or its insurance
carrier is not liable for claims arising out of the conduct of a ridesharing arrangement,
as defined in section 8-02-07.
4. If any dispute exists concerning the amount or nature of the insurance coverage, the
dispute must be tried separately before the main trial determining the claims and
damages of the claimant.
5. This statute confers no right for a claimant to sue the insurer directly.
6. When liability insurance is carried pursuant to this section or pursuant to section
32-12.1-05, no defense in a negligence action may be raised by the insurance carrier
upon the basis of section 39-07-05.