(1) Insurance for various entities of the city's government which is procured through a plan authorized and approved by any organization of governmental entities representing cities, cities and counties, such as, but not limited to, the Tennessee Municipal League Insurance Pool, may be contracted for without public advertising, competitive bidding, or invitation to submit quotations, All contracts awarded for such insurance shall be subject to approval of the city commission.
(2) Insurance for various entities of the city's government, which are procured through private or for-profit entities, such as commercial insurance companies, for casualty, liability, inland marine, property, life and health and accident insurances, will be obtained by public advertisement and/or invitations to submit proposals. All contracts awarded for such insurance shall be subject to approval of the city commission. Insurance policies thus contracted will usually be for a term of three (3) years, with annual premium adjustments as approved by the commission.