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A. The obligations assumed under this chapter by the city and the city attorney shall not apply to:

1. Any dishonest, fraudulent, criminal or malicious act of any official or employee;

2. Any act of an official or employee which is not performed on behalf of the city;

3. Any act which is outside the scope of an official’s or employee’s service or employment with the city; or

4. Any lawsuit brought by or on behalf of the city.

B. The provisions of this chapter shall have no force or effect with respect to any accident, occurrence or circumstance for which the city or the official or employee is insured against loss or damages under the terms of any valid insurance policy. (Ord. 2090 § 3, 1988)