NAC519A.605. Failure to pay premiums: Penalty; termination of participation; liability of bond pool.

     1. If a participant fails to pay the premiums in the amount and by the time required by NAC 519A.595, the participant shall pay a penalty of 5 percent of the amount of:

     (a) His or her quarterly premium; or

     (b) His or her annual premium, if the participant pays the premium annually in accordance with a schedule approved by the Administrator or a person designated by the Administrator pursuant to that section.

     2. If a participant fails to pay the quarterly or annual premium and the 5 percent penalty specified in subsection 1 within 30 calendar days after the date on which the premium is due, the Division will notify the participant that his or her participation in the bond pool will be terminated if full payment of the quarterly or annual premium and penalty is not received within 70 calendar days after the date on which the premium was due. The notice will be sent to the participant and the responsible regulatory authority by certified mail, return receipt requested, at least 30 calendar days before any action concerning termination is taken by the Administrator or a person designated by the Administrator.

     3. If full payment of the quarterly or annual premium, including any penalty, is not received within 70 calendar days after the date on which it is due, the Division will send a notice to the responsible regulatory authority and the participant by certified mail, return receipt requested, that his or her participation in the bond pool is terminated. If a participant’s participation in the bond pool is terminated pursuant to this section, the Division will not return the deposit paid by participant pursuant to NAC 519A.595.

     4. The bond pool:

     (a) Is liable for the coverage of the participant for reclamation of land that is disturbed until the date of termination.

     (b) Is not liable for the reclamation of any land that is disturbed after the date of termination.

     (Added to NAC by Dep’t of Minerals, eff. 10-9-90; A by Div. of Minerals, 11-14-97)