(1) As used in this section, "municipal officer" means:
(a) the mayor;
(b) each member of the municipal legislative body;
(c) the municipal treasurer; and
(d) an individual whom the municipal legislative body requires to obtain crime insurance.
(2)
(a) Except as provided in Subsection (2)(c), the legislative body of each municipality shall set the amount of crime insurance required for each municipal officer.
(b) Before a municipal officer may discharge the duties of the officer's office, the municipality shall have in place crime insurance covering the municipal officer in the amount set by the municipality.
(c) Before a municipal treasurer may discharge the duties of the treasurer's office, the municipality shall have in place crime insurance covering the treasurer in an amount not less than the amount set by the State Money Management Council, created in Section 51-7-16.
(d) A municipal legislative body may acquire crime insurance on all municipal officers and the municipal treasurer as a group rather than individually.
(3) The municipal legislative body shall pay the premium of a crime insurance policy described in this section from municipal funds.
(4) The municipal recorder shall maintain proof of crime insurance acquired under this section.