NAC616B.540. Required security deposit: Form; priority of payment in case of loss.

     1. Except as otherwise provided in paragraph (e) of subsection 1 of NRS 616B.353, an association shall satisfy the requirement to make a security deposit by depositing with the Commissioner:

     (a) Cash;

     (b) A certificate of deposit, from a financial institution in this State that is insured federally, made payable to the Commissioner and the association;

     (c) A surety bond, if it is:

          (1) Written by an insurer authorized and licensed to transact the business of surety insurance in this State; and

          (2) Countersigned by a producer of insurance appointed by the insurer;

     (d) A letter of credit that meets the standards set forth in NAC 616B.543; or

     (e) Any combination of cash, certificates of deposit, surety bonds or letters of credit.

Ê Priority of payment in case of loss must be in the order stated in this section.

     2. As used in this section, “producer of insurance” has the meaning ascribed to it in NRS 679A.117.

     (Added to NAC by Comm’r of Insurance, eff. 3-22-96; A by R102-09, 1-28-2010)