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The obligations assumed under this chapter by the County and the County Prosecuting Attorney’s office shall not apply to:

(1) Any dishonest, fraudulent, criminal, or malicious act of an official or employee;

(2) Any act of an official or employee which is not performed on behalf of the County;

(3) Any act which is outside the scope of an official’s or employee’s service or employment within the County; or

(4) Any lawsuit brought by or on behalf of the County.

The provisions of this chapter shall have no force or effect with respect to any accident, occurrence or circumstance for which the County or the official or employee is insured against the loss or damages under the terms of any valid County purchased insurance policy.