Nevada Revised Statutes 598.495 – Security required to be deposited by tour broker and tour operator: Form; term; amount; records; rejection for nonconformance; change in form; inadequate amount
1. Each tour broker and tour operator shall deposit with the Unit:
Terms Used In Nevada Revised Statutes 598.495
- Unit: means the Consumer Affairs Unit of the Department of Business and Industry. See Nevada Revised Statutes 598.0901
(a) A bond executed by a corporate surety approved by the Commissioner and licensed to do business in this state;
(b) An irrevocable letter of credit for which the tour broker or tour operator is the obligor, issued by a bank whose deposits are federally insured; or
(c) A certificate of deposit in a financial institution which is doing business in this state and which is federally insured or insured by a private insurer approved pursuant to NRS 672.755. The certificate of deposit may be withdrawn only on the order of the Commissioner, except that the interest may accrue to the tour broker or tour operator.
2. The term of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be not less than 1 year.
3. The amount of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be $10,000.
4. If the tour broker or tour operator deposits a bond, the tour broker or tour operator shall keep accurate records of the bond and the payments made on the premium. The records must be open to inspection by the Unit during business hours. The tour broker or tour operator shall notify the Unit not later than 30 days before the date of expiration of the bond and provide written proof of the renewal of the bond to the Unit.
5. The Commissioner may reject any bond, letter of credit or certificate of deposit that fails to conform to the requirements of this chapter.
6. A tour broker or tour operator may change the form of security that he or she has deposited with the Unit. If the tour broker or tour operator changes the form of the security, the Commissioner may retain for not more than 1 year any portion of the security previously deposited by the tour broker or tour operator as security for claims arising during the time the previous security was in effect.
7. If the amount of the bond, letter of credit or certificate of deposit falls below the amount required by this section, the tour broker or tour operator shall, within 30 days, increase the amount of the bond, letter of credit or certificate of deposit to the amount required by this section.