Reserve funds for payment of claims or purchase of insurance created by political subdivisions.

Any political subdivision may create and maintain a reserve fund or, may jointly with one or more other political subdivisions, make contributions to a joint reserve fund, for the purpose of: (1) making payment of claims against the cooperating subdivisions when they become payable under this chapter; or (2) for the purpose of purchasing liability insurance to protect the cooperating subdivisions from any or all risks created by this chapter.