(1) The State Fund may, upon approval of the board, provide employers liability insurance as part of the workers' compensation policy for employers insured by the State Fund. The board shall approve the terms and conditions of employers' liability coverage including, but not limited to, the limits of liability.

(2) In establishing rates the board shall, in consultation with the actuary, consider employers' liability basic limits coverage in establishing the overall rate level adjustment. Limits of liability above the basic limit, and related rates, may be established by the board in consultation with the actuary.