1. The department of commerce and insurance may elect, under the provisions of section 287.030, to come under the provisions of chapter 287, governing workers’ compensation, and that law is extended to include all employees of the department of commerce and insurance under any contract of hire, express or implied, oral or written, or under any appointment or election. The state of Missouri may be a self-insurer and assume all liability imposed by chapter 287, in respect to the department of commerce and insurance employees, without insurance. The attorney general shall appear on behalf of and defend the state in all actions, when the state is a self-insurer, brought by employees of the department of commerce and insurance referred to herein under the provisions of the workers’ compensation law.

2. The workers’ compensation coverage may be provided by the purchase of insurance or by the deposit in the commissioner of administration’s office of a fund from which workers’ compensation benefits to employees shall be paid. Purchase of the insurance or the deposit of a fund shall be made from general appropriations.

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3. The department of commerce and insurance shall adopt rules classifying the employees mentioned herein who may be eligible for compensation under this section, and its classification shall be decisive as to whether or not an employee falls within the definition of an employee eligible for workers’ compensation coverage under this section.

4. The director of the department of commerce and insurance is authorized to perform such duties as may be necessary to carry out effectively the purposes of this section.