NAC449.4526. Application for indemnification for certain damages; claims against surety bond or substitute thereof.

     1. A person who has sustained damages as a result of the bankruptcy of or any breach of contract by a facility may file an application for indemnification with the Administrator of the Division. The Administrator of the Division shall return an incomplete application to the applicant.

     2. An application filed pursuant to subsection 1 must include a copy of the court order or settlement agreement which indicates a determination that the patient sustained damages as a result of a breach of contract or bankruptcy of a facility, proof of the identity of the patient or patient’s legal representative that is acceptable to the Division and a statement of the patient or patient’s legal representative which includes the following information:

     (a) A brief description of the damages sustained by the patient as a result of the bankruptcy of or any breach of contract by the facility;

     (b) The date that the damages were sustained and the amount of damages claimed; and

     (c) The name and address of the facility in which the patient sustained damage.

     3. The Division may bring an action for interpleader against all claimants upon the surety bond or substitute thereof filed or deposited pursuant to NRS 449.068 or 449.069, as applicable. If the Division brings such an action, the Division shall publish notice of the action at least once each week for 2 weeks in a newspaper of general circulation in the county in which the facility has its principal place of business. The Division may deduct its costs of the action, including the costs of publication of the notices, from the amount of the surety bond or substitute thereof.

     4. All claims against the surety bond or substitute thereof have equal priority. If the surety bond or substitute thereof is insufficient to pay all the claims in full, the claims must be paid pro rata.

     5. If no claims have been filed against the surety bond or substitute thereof deposited with the Division within 12 months after the license of the facility expires or is revoked, the Division shall release the surety bond or substitute thereof to the facility and shall not consider any claim filed by a patient against the surety bond or substitute thereof after that time.

     6. If one or more claims have been filed against the surety bond or substitute thereof within 12 months after the license of the facility expires or is revoked, the proceeds must not be released to the facility or distributed to any patient earlier than 18 months after the license of the facility expires or is revoked.

     (Added to NAC by Bd. of Health by R052-02, eff. 7-24-2002; A by R078-12, 12-20-2012)