§ 16A-9. Disclaimer of coverage.

A. 

The governing body may disclaim liability for coverage or defense costs if any of the following conditions shall occur:

(1) 

The employee is covered by insurance for the cost of his/her defense and indemnification.

(2) 

The legal proceeding is instigated or brought by the employee.

(3) 

The legal proceeding is instigated or brought by the municipality against the employee.

(4) 

Any of the acts or omissions complained of were, in the opinion of the governing body, the product of actual fraud, actual malice, willful misconduct or an intentional wrong.

(5) 

The legal proceeding involves a question concerning the election laws.

(6) 

The legal proceeding involves a claim for misfeasance or malfeasance in office or a claim of fraud, theft or misappropriation of public funds, and the employee is found liable for the charge.

(7) 

The legal proceeding is a criminal or disciplinary action.

(8) 

The legal proceeding involves an act or omission of the employee which was not within the scope of employment.

B. 

The Borough may not disclaim coverage under this chapter if there shall have been a specific determination by the trier of fact that the employee's actions or omissions complained of were within the employee's scope of employment, duties and responsibilities and, further, that the employee's actions or omissions complained of did not involve actual fraud, actual malice or willful misconduct.