House Bill 291 permits counties, townships, municipal corporations, school districts, community schools, and libraries to use an “employee dishonesty and faithful performance of duty insurance policy” in place of surety bonds. This insurance policy can cover any specified officers, employees, and appointees that would traditionally be covered by a surety bond – e.g., superintendents and treasurers. If such an insurance policy is adopted, the policy must cover losses caused by the fraudulent and dishonest actions of the covered employee, as well as the covered employee’s failure to perform a duty. The amount of the coverage under this insurance policy must equal or exceed the amount otherwise required by a surety bond.
House Bill 291 takes effect on March 19, 2019.
The official legislation summary of House Bill 291 can be found here.
Authors: Matthew John Markling and the McGown & Markling Team.
Note: This blog entry does not constitute – nor does it contain – legal advice. Legal jurisprudence is like the always changing Midwestern weather. As a result, this single blog entry cannot substitute for consultation with a McGown & Markling attorney. If legal advice is needed with respect to a specific factual situation, please feel free to contact a McGown & Markling attorney.