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10-4-427. Claims against sureties.
Arkansas Code — all titles (historical 2020) · legal_authorities
10-4-427. Claims against sureties.
(a) With the approval of the Legislative Joint Auditing Committee, the Legislative Auditor shall give notice and make proof of loss to and demand payment of the surety on any bond covering an official or employee in which the audit report of the records of that official or employee reflects any shortage or other liability for which that official or employee and his or her surety may in any way be liable.
(b)(1) Within a reasonable time after the Legislative Auditor has given notice and made proof of loss and demand for payment as stated in subsection (a) of this section, the surety shall make payment of the amounts found to be due in the name of the appropriate entity and forward the payment to the entity.
(2) Upon receipt of payment from the surety, the entity shall credit the amounts received to the accounts entitled to the funds.
(c) The requirements of the self-insured fidelity bond program, § 21-2-701 et seq., shall apply to those officials or employees covered by the program, including, but not limited to, the provision for timing of coverage determinations by the Governmental Bonding Board under § 21-2-709.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 10-4-427
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:10-4-427
Source file: gov.ar.code.title.10.odt
Pages: Not recorded – Not recorded
Passage SHA-256: c97115a9e504512194521c7205293160c03fbc1d80c9d9befc681444ac832e18
Source location: content.xml paragraph 4145
Stored source content
10-4-427. Claims against sureties.
(a) With the approval of the Legislative Joint Auditing Committee, the Legislative Auditor shall give notice and make proof of loss to and demand payment of the surety on any bond covering an official or employee in which the audit report of the records of that official or employee reflects any shortage or other liability for which that official or employee and his or her surety may in any way be liable.
(b)(1) Within a reasonable time after the Legislative Auditor has given notice and made proof of loss and demand for payment as stated in subsection (a) of this section, the surety shall make payment of the amounts found to be due in the name of the appropriate entity and forward the payment to the entity.
(2) Upon receipt of payment from the surety, the entity shall credit the amounts received to the accounts entitled to the funds.
(c) The requirements of the self-insured fidelity bond program, § 21-2-701 et seq., shall apply to those officials or employees covered by the program, including, but not limited to, the provision for timing of coverage determinations by the Governmental Bonding Board under § 21-2-709.
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Arkansas Code — all titles (historical 2020) · legal_authorities
21-2-701. Purpose.
It is found and determined that:
(1) The State of Arkansas and the counties, municipalities, and school districts of the State of Arkansas are expending large sums of money each year for premiums on blanket bonds for officers and employees;
(2) Considerable savings might be effected by the establishment of a self-insured fidelity bond program for state officials and employees, county officials and employees, municipal officials and employees, and school district officials and employees;
(3) This subchapter is designed to establish a governmental bonding board to develop a self-insured fidelity bond program for those officials and employees; and
(4) This subchapter is designed to provide that self-insured fidelity bonds would be in lieu of the various blanket bonds which are presently required under this chapter for various officials and employees and to thereby effectuate substantial savings in the cost of blanket bonds for those officials and employees.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 21-2-701
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 21-2-701. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
21-2-709. Determination of coverage — Assignment of rights.
(a)(1)(A) Upon the receipt of the proof of loss from the Legislative Auditor, the Governmental Bonding Board shall determine whether the loss is covered under the Self-Insured Fidelity Bond Program.
(B) The board may withhold claim determination and a loss payment until the investigation in each case has been completed and all information deemed necessary for determination of coverage under the program has been received.
(2) If the board determines that the loss is covered under the program, then:
(A) The Insurance Commissioner shall authorize fidelity bond loss payments from the Fidelity Bond Trust Fund to the participating governmental entity on a timely basis; and
(B) The board shall:
(i) Provide a timely explanation of a loss payment and a denial of loss to the Legislative Auditor and to the participating governmental entity; and
(ii)(a) Determine whether civil remedies should be pursued to recover the loss.
(b) In making a determination under subdivision (a)(2)(B)(ii)(a) of this section, the board shall consider the cost-effectiveness of pursuing civil remedies.
(3) All vouchers for a loss payment shall include as supporting documents a copy of the payment recommendation by the State Risk Manager and a copy of the proof of loss from the Legislative Auditor.
(4) Any loss payment may be adjusted by any applicable deductible, restitution, or coinsurance payment.
(b)(1) Before any loss payment is paid from the fund, the recipient of the loss payment shall sign and return a transfer of rights form assigning to the fund to the extent of the loss payment all rights and claims that the recipient may have against the official, officer, or employee involved. The fund shall be subrogated to all
Source: Arkansas Code — historical release 78 (November 6, 2020) · 21-2-709
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 21-2-709. This identifies an authority to review, not proof of applicability.