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What's New: Government Affairs

SFAA and AIA Working with Indiana Attorney General on Public Official Bonds

Tuesday, February 23, 2016  

SFAA and AIA and the Indiana Insurance Institute have been working to address the stacking liability issues for Indiana public official bonds that were enacted in 2015. A bill recently passed out of committee in the Senate with amendments that SFAA drafted and negotiated. Instead of a “multiyear annual renewal bond,” the amendment provides that the public official bond could be a continuous bond with the penal sum available each year during the term of office. The amendment has an aggregate limit for each bond year and also provides that the surety’s maximum aggregate liability for a term of office would be the penal sum of the bond for the current year plus the three immediately preceding years in order to create some limitation to the stacking effect. For example, a $30,000 bond @ four years would be $120,000.

SFAA testified at the Senate hearing in support of these amendments. The Attorney General testified in the Senate committee hearing that six years for claims would be preferable and later noted that the current statute of limitations is five years. SFAA will continue to work with the Attorney General to resolve this issue. HB 1372 passed out of committee in the Senate in order to meet legislative deadlines with the understanding that if we cannot reach an agreement with the Attorney General, the bill will not move this year. 


Members should visit Government Relations / General Info (Members) for more information.


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