Pennsylvania Statutes Title 71 P.S. State Government § 634. Bonds and liability insurance (Adm. Code § 2404)

(a) To procure from a corporation or corporations, authorized by law to act as sureties in the Commonwealth of Pennsylvania, good and sufficient bonds, which shall be approved by the Attorney General, and filed with the State Treasurer or the Federal Government, to meet the requirements of law, in the case of all State officers and employes required by statute to give surety bonds to the Commonwealth or the Federal Government for the faithful performance of their official duties or to account for State funds in their possession: Provided, That if and when the Commonwealth shall establish its own indemnity fund, such bonds shall be purchased only in such cases as the Executive Board may require;

(b) To procure automobile liability insurance, covering vehicles owned by the Commonwealth of Pennsylvania or the United States of America or its instrumentalities, which are loaned to and operated by State officers or employes or officers and enlisted men of the Pennsylvania National Guard, the Pennsylvania Reserve Corps or its successor, and to procure public liability insurance covering all State employes, including members of boards and commissions, while engaged in the performance of their duties, and to purchase such insurance on a group basis, or otherwise, and the issuance of such insurance for State employes by any duly authorized insurance company in Pennsylvania, is hereby declared to be lawful, and in the department's discretion, to purchase excess fire insurance on State buildings, and any other kind of insurance which it may be lawful for the Commonwealth, or any department, board, commission, or officer thereof, to carry and for which an appropriation has been made to the department, or to any other administrative department, board, or commission.

The department shall pay for such insurance, out of the moneys appropriated to it, except that it shall not pay for insurance covering (1) officers, employes, or property of the departments, boards, and commissions, whose expenses are wholly paid out of funds other than the General Fund of the State Treasury; or (2) officers, employes, and property of departments, boards, and commissions receiving appropriations out of the General Fund for such purpose. Insurance covering the officers, employes, and property of such departments, boards, and commissions shall be paid for out of the special funds appropriated to them, or out of the moneys of the General Fund, appropriated to them, as the case may be.

All automobile liability insurance procured by the Department of Property and Supplies hereunder shall protect both the Commonwealth and the State officer or employe operating the vehicle, or State officers and employes and officers and enlisted men of the Pennsylvania National Guard, the Pennsylvania Reserve Corps, or its successor operating vehicles loaned by the Federal Government, against claims for damages for injury to person or property, within such limits as the department, with the approval of the Executive Board, shall prescribe.