Nevada Revised Statutes 692A.1041 – Title agent and insurer required to deposit surety bond or substitute form of security with Commissioner; requirements for bond or other security
1. In addition to all other requirements set forth in this title and except as otherwise provided in subsections 2, 3 and 4 and NRS 692A.1042, as a condition to doing business in this State, each title agent and title insurer shall deposit with the Commissioner and keep in full force and effect a corporate surety bond which complies with NRS 679B.175 and is in an amount as determined by the Commissioner. The bond must name as principals the title agency or title insurer and all escrow officers employed by or associated with the title agent or title insurer.
Terms Used In Nevada Revised Statutes 692A.1041
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
2. Each title agent and title insurer may, in lieu of a corporate surety bond that complies with the provisions of subsection 1, deposit a substitute form of security that complies with the provisions of NRS 692A.1042 in an amount as determined by the Commissioner. The Commissioner shall determine the appropriate amount of the substitute form of security that must be deposited initially by the title agent or title insurer based upon the expected average collected balance of the trust account or escrow account maintained by the title agent or title insurer pursuant to NRS 692A.250. After the initial deposit, the Commissioner shall, on an annual basis, determine the appropriate amount of the substitute form of security that must be deposited by the title agent or title insurer based upon the average collected balance of the trust account or escrow account maintained by the title agent or title insurer pursuant to NRS 692A.250.
3. A title agent or title insurer may offset or reduce the amount of the substitute form of security that the title agent or title insurer is required to deposit pursuant to subsection 2 by the amount of any of the following:
(a) Cash or securities deposited with the Commissioner in this State pursuant to NRS 680A.140 or 682B.015.
(b) Reserves against unpaid losses and loss expenses maintained pursuant to NRS 692A.150 or 692A.170.
(c) Unearned premium reserves maintained pursuant to NRS 692A.160 or 692A.170.
(d) Fidelity bonds maintained by the title agent or title insurer.
(e) Other bonds or policies of insurance maintained by the title agent or title insurer covering liability for economic losses to customers caused by the title agent or title insurer.
4. A natural person licensed as a title agent is not obligated to deposit a corporate surety bond or substitute security, as defined in NRS 692A.1042, if that natural person is employed by a title insurer, or by a firm or corporation licensed as a title agent.