This chapter and the policies set forth herein shall not apply to any dishonest, fraudulent, criminal or malicious act, to any act outside the scope of service or employment, to any lawsuit brought by or on behalf of the district or to any accident, occurrence or circumstance in which the district or a commissioner or employee is insured against loss or damages under the terms of an insurance policy or self-insurance or joint insurance program.

The district’s attorney shall determine whether the commissioner or employee was performing duties for or employment with the district in good faith, and whether a commissioner or employee committed a dishonest, fraudulent, criminal or malicious act. The commissioner or employee may appeal such determination(s) to the board of commissioners. [Res. 670 § 2, 2011.]