NRS598.495. Security required to be deposited by tour broker and tour operator: Form; term; amount; records; rejection for nonconformance; change in form; inadequate amount. [Effective July 1, 2015.]

      1.  Each tour broker and tour operator shall deposit with the Division:

      (a) A bond executed by a corporate surety approved by the Commissioner and licensed to do business in this state;

      (b) An irrevocable letter of credit for which the tour broker or tour operator is the obligor, issued by a bank whose deposits are federally insured; or

      (c) A certificate of deposit in a financial institution which is doing business in this state and which is federally insured or insured by a private insurer approved pursuant to NRS 678.755. The certificate of deposit may be withdrawn only on the order of the Commissioner, except that the interest may accrue to the tour broker or tour operator.

      2.  The term of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be not less than 1 year.

      3.  The amount of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be $10,000.

      4.  If the tour broker or tour operator deposits a bond, the tour broker or tour operator shall keep accurate records of the bond and the payments made on the premium. The records must be open to inspection by the Division during business hours. The tour broker or tour operator shall notify the Division not later than 30 days before the date of expiration of the bond and provide written proof of the renewal of the bond to the Division.

      5.  The Commissioner may reject any bond, letter of credit or certificate of deposit that fails to conform to the requirements of this chapter.

      6.  A tour broker or tour operator may change the form of security that he or she has deposited with the Division. If the tour broker or tour operator changes the form of the security, the Commissioner may retain for not more than 1 year any portion of the security previously deposited by the tour broker or tour operator as security for claims arising during the time the previous security was in effect.

      7.  If the amount of the bond, letter of credit or certificate of deposit falls below the amount required by this section, the tour broker or tour operator shall, within 30 days, increase the amount of the bond, letter of credit or certificate of deposit to the amount required by this section.

      (Added to NRS by 2001, 981; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)