(a) The governing board of an institution of higher education may purchase insurance insuring the institution and its employees against any liability, risk, or exposure and covering the losses of any institutional property.
(b) The governing board may pay the cost of any insurance from any funds of the institution.

(c) § 612.002(b), Government Code, does not apply to an institution of higher education or university system purchasing insurance under this section.
(d) In this section, “governing board,” “institution of higher education,” and “university system” have the meanings assigned by § 61.003.