Within the limitations of appropriations therefor, the university of Kansas medical center may purchase or may reimburse a private practice medical association at the university of Kansas medical center for the purchase of liability insurance, by speciality, for any person who is or will be engaged in a postgraduate residency training program in allopathic medicine at the university of Kansas medical center for any liability for injuries or damages resulting from any act or omission of any such person while engaged in such program. Contracts under this section shall be executed for the university of Kansas medical center by the chancellor of the university of Kansas or the chancellor’s designee.