TNRMT Coverage Option to Replace Public Officials Surety Bonds

Tom Montgomery, NGU Risk Management

June, 2016

TNRMT has increased your Fidelity and public officials bond limit to $400,000. This increase allows you to take advantage of a new law enacted this year by the Tennessee General Assembly. TCA § 8-19-101 allows a blanket bond in the amount of $400,000 to substitute for the individual bonds for public officials and employees for all Tennessee political subdivisions as set forth in TCA § 8-19-101 and TCA § 4-4-108. To take advantage of this new law, you will need to file the certificate of Fidelity coverage with the Registrar of Deeds or County Clerk with whom you would ordinarily file the individual official's bonds. If you prefer, you may continue to purchase individual bonds that satisfy the existing bond statutes with the limits required by the Comptroller's tables of limits. By increasing the Fidelity limit and providing the appropriately worded certificate of your coverage, you are able to meet the requirements of the new bond law thereby making the purchase of other bonds unnecessary.

This issue is rightfully receiving a lot of attention as this is providing a cost savings to all TNRMT members by eliminating antiquated and duplicative coverage(bonds).

In short, all public officials bonds previously required by statute are no longer required, provided provisions are made to satisfy the new law. This includes bonds for School Directors, and all elected officials. TNRMT does not plan to provide coverage under this fidelity bond for 2 positions. The first being constables as they not our MEMBER employees. The second is notary publics, as seldom are they only performing services for the MEMBER.

If you have questions about this new Fidleity limit, please contact Tom Montgomery with NGU Risk Management at 615.822.5454, or by email at tmontgomery@ngutn.com.