104.1075.  Disability income benefits. — 1.  Each board shall provide or contract, or both, for disability income benefits for employees pursuant to sections 104.1003 to 104.1093, and other persons specified by applicable state law, as follows:

  (1)  Definitions of disability and other rules and procedures necessary for the operation and administration of the disability benefit shall be established by each board;

  (2)  An employee may elect to waive the receipt of the disability benefit provided for under this section at any time.

  2.  To the extent that each board enters or has entered into any contract with any insurer or service organization to provide the disability benefits provided for pursuant to this section:

  (1)  The obligation to provide such disability benefits shall be primarily that of the insurer or service organization and secondarily that of the board;

  (2)  Any member who has been denied disability benefits by the insurer or service organization and has exhausted all appeal procedures provided by the insurer or service organization may appeal such decision by filing a petition against the insurer or service organization in a court of law in the member's county of residence;

  (3)  The board and the system shall not be liable for the disability benefits provided for by an insurer or service organization pursuant to this section and shall not be subject to any cause of action with regard to disability benefits or the denial of disability benefits by the insurer or service organization unless the member has obtained judgment against the insurer or service organization for disability benefits and the insurer or service organization is unable to satisfy that judgment.