NRS 688C.200 Investigation of applicant; issuance of license; requirements regarding evidence of financial responsibility; requirements regarding service of process for nonresident; provision of certain new or revised information to Commissioner.

438 words·~2 min read·/nv/chapter-688c-viatical-settlements/688c-200

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. Upon the filing of an application and payment of all applicable fees, the Commissioner shall investigate the applicant, and issue a license if the Commissioner finds that the applicant:

(a)If a provider of viatical settlements, has set forth a detailed plan of operation;

(b)Is competent and trustworthy and intends to act in good faith in the capacity for which the license is sought;

(c)Has a good reputation in business and, if a natural person, has had experience, training or education which qualifies the applicant in that capacity;

(d)If an organization, provides a certificate of good standing from the state of its domicile; and

(e)If a provider or broker of viatical settlements:

(1)Has included a plan to prevent fraud which satisfies the requirements of NRS 688C.490 ; and

(2)Has demonstrated evidence of financial responsibility through either:

(I)A surety bond which complies with NRS 679B.175 and is in an amount determined by the Commissioner, which must be not less than $250,000; or

(II)A deposit of cash, certificates of deposit, securities or any combination thereof in the amount of $250,000.

2. The Commissioner shall not issue a license to a nonresident unless a written designation of an agent for service of process, or an irrevocable written consent to the commencement of an action against the applicant by service of process upon the Commissioner, accompanies the application.

3. A provider or broker of viatical settlements shall furnish to the Commissioner new or revised information concerning partners, members, officers, holders of more than 10 percent of its stock, and designated employees within 30 days after a change occurs.

4. Notwithstanding any provision of this section to the contrary, the Commissioner shall accept as evidence of financial responsibility proof that financial instruments complying with the requirements of this section have been filed with a state where the applicant is licensed as a provider or broker of viatical settlements.

5. A surety bond issued for the purposes of this section must specifically authorize recovery by the Commissioner on behalf of any person in this State who sustained damages as a result of:

(a)Erroneous acts;

(b)Failure to act; or

(c)Conviction of:

(1)Fraud; or

(2)Unfair practices,

Ê by the provider or broker of viatical settlements.

6. The Commissioner may request evidence of financial responsibility as described in subparagraph

(2)of paragraph

(e)of subsection 1 at any time the Commissioner deems necessary.