71.185. 1. Any municipality engaged in the exercise ofgovernmental functions may carry liability insurance and pay thepremiums therefor to insure such municipality and their employeesagainst claims or causes of action for property damage orpersonal injuries, including death, caused while in the exerciseof the governmental functions, and shall be liable as in othercases of torts for property damage and personal injuriesincluding death suffered by third persons while the municipalityis engaged in the exercise of the governmental functions to theextent of the insurance so carried.
2. In all suits brought against the municipality for tortdamages suffered by anyone while the municipality is engaged inthe exercise of governmental functions, it shall be unlawful forthe amount of insurance so carried to be shown in evidence, butthe court shall be informed thereof and shall reduce any verdictrendered by a jury for an amount in excess of such insurance tothe amount of the insurance coverage for the claim.
(L. 1959 S.B. 346 ยงยง 1, 2)