NRS 42.360 Surety bond: Liability of surety not affected by certain acts; notice required before cancellation or modification; automatic expiration of registration for cancellation or noncomplying modification; modification or cancellation does not affect liability incurred previously.
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NRS 42.360 Surety bond: Liability of surety not affected by certain acts; notice required before cancellation or modification; automatic expiration of registration for cancellation or noncomplying modification; modification or cancellation does not affect liability incurred previously.
1. The liability of the surety which issued a surety bond used by a structured settlement purchase company to satisfy the requirements of NRS 42.340 must not be affected by any:
(a)Breach of contract, breach of warranty, failure to pay a premium or other act or omission of the structured settlement purchase company; or
(b)Insolvency or bankruptcy of the structured settlement purchase company.
2. A surety which issued a surety bond used by a structured settlement purchase company to satisfy the requirements of NRS 42.340 and the structured settlement purchase company which obtained the surety bond shall not cancel or modify the surety bond during the term for which it is issued unless the surety or the structured settlement purchase company provides written notice to the Unit at least 20 days before the effective date of the cancellation or modification.
3. If a surety bond used by a structured settlement purchase company to satisfy the requirements of NRS 42.340 is modified so as to make the surety bond not comply with any provision of NRS 42.200 to 42.400 , inclusive, or the surety bond is cancelled, the registration of the structured settlement purchase company automatically expires on the effective date of the modification or cancellation unless a new surety bond or letter of credit which complies with NRS 42.200 to 42.400 , inclusive, is filed with the Unit on or before the effective date of the modification or cancellation.
4. A modification or cancellation of a surety bond used by a structured settlement purchase company to satisfy the requirements of NRS 42.340 does not affect any liability of the bonded surety company incurred before the modification or cancellation of the surety bond.