A northern New Jersey borough and its insurer have agreed to a settlement with a police officer totaling more than $2 million.

Police Car (welcomia, ThinkStock)

According to The Record newspaper, Regina Tasca was suspended in 2011 after she was found unfit for duty following a psychological review. The borough's first woman police officer was terminated in 2012, but a state judge last year found she was improperly fired.

Bogota agreed to pay more than $300,000 and reinstated Tasca.

She had been accused with failing to help an officer transporting an intoxicated woman and interfering with two officers restraining a man

Tasca agreed to resign. She'll receive $125,000 a year for two years followed by monthly payments of about $4,000 for up to 20 years.

A borough attorney says they are happy the matter is concluded.