CO Code § 24-14-102 (2021)
2021 Colorado Code|Title 24 - Government - State|Article 14 - Liability - State and County Employees|§ 24-14-102. Authorize Purchase of Liability Insurance and Crime Insurance in Lieu of a Public Official Personal Surety Bond - Definitions

  The head of a department of the state of Colorado, with the approval of the governor or, in the case of the county or city and county, the chief executive officer or board of county commissioners, subject to appropriations being available therefor, is hereby authorized to procure insurance, through the department of personnel as provided in the "Procurement Code", articles 101 to 112 of this title 24, for the purpose of insuring its officers, employees, and agents against any liability, other than a liability that may be insured against under the "Workers' Compensation Act of Colorado", articles 40 to 47 of title 8, for injuries or damages resulting from their negligence or other tortious conduct during the course of their service or employment. Counties or cities and counties are authorized to insure their officers, employees, and agents against similar liabilities.      Whenever a person is required by law to provide or purchase a personal surety bond as a condition of serving in a public elected, appointed, or employed position, the public entity for which the person will serve may, in lieu of the required bond, purchase crime insurance to protect the public entity from any dishonesty, theft, or fraud by the person. However, this section does not apply to the bond required of the state treasurer pursuant to section 24-22-101. (2) (a) Whenever a person is required by law to provide or purchase a personal surety bond as a condition of serving in a public elected, appointed, or employed position, the public entity for which the person will serve may, in lieu of the required bond, purchase crime insurance to protect the public entity from any dishonesty, theft, or fraud by the person. However, this section does not apply to the bond required of the state treasurer pursuant to section 24-22-101.    If a public entity purchases crime insurance in lieu of a personal surety bond pursuant to this subsection (2), the public official or employee is relieved of all statutory requirements related to the personal surety bond, including requirements as to the type, provider, form, amount, or filing of the personal surety bond. The public entity is likewise relieved of any statutory requirements related to the personal surety bond of the public official or employee.    Crime insurance purchased pursuant to this subsection (2) must be purchased from an insurance provider licensed in the state of Colorado. The public entity shall pay the premiums for the insurance.    As used in this subsection (2), unless the context otherwise requires:   "Crime insurance" means a form of insurance to protect public assets from loss due to dishonesty, theft, or fraud by a public official.    "Personal surety bond" means a bond, surety, surety bond, surety company bond, corporate surety bond, corporate fidelity bond, individual bond, schedule bond, blanket bond, or official bond.    "Public entity" means the state of Colorado, principal departments listed in section 24-1-110, public colleges and universities, state or local commissions, state or local authorities, counties, cities, cities and counties, towns, municipalities, districts, special districts, boards, and school districts.           Source: L. 62: p. 177, § 2. C.R.S. 1963: § 72-16-2 . L. 81: Entire section amended, p. 1286, § 5, effective January 1, 1982. L. 90: Entire section amended, p. 568, § 47, effective July 1. L. 96: Entire section amended, p. 1516, § 46, effective June 1. L. 2018: Entire section amended, (HB 18-1140), ch. 41, p. 463, § 6, effective August 8.   Cross references: (1) For the "Workers' Compensation Act of Colorado", see articles 40 to 47 of title 8; for authority for public entities other than the state to obtain insurance, see § 24-10-115.   (2) For the legislative declaration in HB 18-1140, see section 1 of chapter 41, Session Laws of Colorado 2018.   ANNOTATION   Law reviews. For comment on Am. Bus Lines v. Am. Sur. Co., appearing below, see 43 Den. L.J. 238 (1966).   Section is only applicable to state, county, and city departments. This section only applies to agencies or departments of the state, or to counties or cities and counties. Maloney v. City & County of Denver, 35 Colo. App. 167, 530 P.2d 1004 (1974).   It does not apply to political subdivisions. Maloney v. City & County of Denver, 35 Colo. App. 167, 530 P.2d 1004 (1974).   Therefore, it cannot apply to school boards or school districts. Maloney v. City & County of Denver, 35 Colo. App. 167, 530 P.2d 1004 (1974).   Section is authorization statute and was not designed to limit scope of coverage. Am. Bus Lines v. Am. Sur. Co., 238 F. Supp. 589 (D.Colo. 1965).   "Permissive use", rather than "scope of employment", is the proper test of coverage with respect to a liability policy covering state vehicles and extending coverage to use with the state's permission. Am. Bus Lines v. Am. Sur. Co., 238 F. Supp. 589 (D.Colo. 1965).   Therefore, employee driving state vehicle for repairs covered. A state employee who had driven a state vehicle for repairs and was returning it at the time of an accident was using the truck with the state's permission and was acting within his scope of employment, even though he had earlier violated regulations by going to his home and the home of a friend and by drinking beer. Am. Bus Lines v. Am. Sur. Co., 238 F. Supp. 589 (D.Colo. 1965).