692B.210 - Mutual insurers: Permit; bond or deposit.
692B.210 Mutual insurers: Permit; bond or deposit.
1. Before soliciting applications for insurance as required under NRS 692B.200, the incorporators of the proposed insurer shall procure a solicitation permit as required by NRS 692B.040, and shall file with the Commissioner a corporate surety bond in the penal sum of $50,000 in favor of the State of Nevada and conditioned as follows:
(a) Upon due accounting for and deposit, as required under NRS 692B.230, of funds received as premiums upon applications for insurance; and
(b) If the corporation fails to complete its organization and secure a certificate of authority issued by the Commissioner within the period allowed therefor by the solicitation permit, all premiums collected from applicant members will be promptly returned to them, and all other indebtedness of the corporation, other than any compensation to directors, officers or solicitors of insurance applications, and costs incurred by the State of Nevada in any legal proceedings for the liquidation or dissolution of the corporation will be paid.
2. In lieu of such a bond, the incorporators may deposit with the Commissioner cash in the amount of $50,000, or securities of the United States Government or of the State of Nevada of a market value of at least $50,000, and the Commissioner shall hold such deposit in trust for the same purposes as apply to a bond under subsection 1.
3. If the corporation or an affiliate corporation proposes also to offer securities for initial financing of the proposed insurer, in addition to the securing of qualifying applications for insurance, the bond or deposit required by this section may be combined with that required under NRS 692B.150, with appropriate extension of the conditions of such bond or deposit to comply with the requirements of both sections, so that only one such bond or deposit of $50,000 shall be necessary for all such purposes.
4. The Commissioner shall release and discharge the bond or deposit or remaining portion thereof held under this section upon settlement of all liabilities, if any, against it.
(Added to NRS by 1971, 1794)