Section R20-5-712. Fidelity Policy

A.      A pool shall obtain and maintain during all periods of self- insurance a fidelity policy to protect the pool from unlawful actions of the following:

1.        Individuals  appointed   to  the  pool’s  board   of  trustees (individual and collective liability),

2.        Administrator of the pool, and

3.        Employees of the pool.

B.       The amount of the fidelity policy in subsection (A) shall be at least $1 million. A pool may purchase a fidelity policy in excess of $1 million if the pool determines that a policy in excess of $1 million is necessary to protect members of the pool from damages resulting from misrepresentation or misuse of any monies or securities owned, controlled, or managed by the board, administrator, or employees of the pool.

C.      The pool shall provide the Commission proof of the fidelity policy as required under R20-5-707 and R20-5-708.

Historical Note

Adopted effective September 9, 1998 (Supp. 98-3).