Funds that assisted charter school in issuing statutorily-forbidden bonds may not seek insurance coverage

The employers Mutual Casualty Company sued Helicon Associates in a dispute over insurance coverage.  The company argued that it was not required to pay a claim arising out of the default on a charter school's bonds, because the defendant funds had assisted the charter school in issuing bonds that the school was statutorily forbidden to issue.  The high court agreed with the insurer and held that since the defendants had assisted the school in issuing the proscribed bonds, the defendants "made statements and representations that were untrue," thereby committing fraud and dishonesty within the meaning of the insurance policy.