ORANGE COUNTY IN BANKRUPTCY : BOND TICKER : Invoking ‘Crime’ Insurance Clause
Orange County officials have notified the Hartford Insurance Group that it intends to file a claim under a $1-million “crime bond” that includes “public employee dishonesty” coverage.
Though it has not yet formally submitted a claim, County Risk Manager Tom Beckett said Friday that the county will argue that former County Treasurer-Tax Collector Robert L. Citron “failed to faithfully perform his duties.”
“When we notified the insurance carrier that we intended to submit a claim, it was in the context of the treasurer’s activities,” Beckett said.
The policy, which costs the county $34,531 a year in premiums, also contains an endorsement that says the claim shall be paid jointly to “all school districts and other district and public agencies which by law are required to deposit their funds in the county treasury.”
Compiled by Shelby Grad, with Lee Romney, Debora Vrana, Gebe Martinez and Mark Platte.
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