2022 Nevada Revised Statutes
Chapter 42 - Damages
NRS 42.340 - Requirement to register as structured settlement purchase company; application; certification of surety bond, letter of credit or cash bond that meets certain requirements.
1. A person shall not act as a transferee, attempt to acquire structured settlement payment rights through a transfer from a payee who resides in this State or file a structured settlement transfer proceeding in this State unless the person is registered with the Unit to do business in this State as a structured settlement purchase company.
2. A person may apply pursuant to this section with the Unit for a registration to do business in this State as a structured settlement purchase company. An application for an initial or renewed registration must be submitted on a form prescribed by the Unit. An initial or renewed registration expires 1 year after it is issued and may be renewed by the registrant on or before the renewal date for additional 1-year periods.
3. The application must contain a sworn certification by an owner, officer, director or manager of the applicant, if the applicant is not a natural person, or by the applicant if the applicant is a natural person, certifying that:
(a) The applicant has secured a surety bond, has been issued a letter of credit or has posted a cash bond in the amount of $50,000 which relates to its business as a structured settlement purchase company in this State;
(b) The surety bond, letter of credit or cash bond:
(1) Is intended to protect payees who do business with the applicant when the applicant is acting as a structured settlement purchase company; and
(2) Complies with all applicable provisions of NRS 42.200 to 42.400, inclusive; and
(c) The applicant will comply with all of the provisions of NRS 42.200 to 42.400, inclusive, when acting as a structured settlement purchase company and filing structured settlement transfer proceedings in this State.
4. The applicant must submit to the Unit with each initial and renewal application a copy of the surety bond, letter of credit or cash bond obtained by the applicant for the purposes of subsection 3.
5. A surety bond obtained for the purposes of subsection 3 must be payable to the State of Nevada.
6. A surety bond, letter of credit or cash bond obtained for the purposes of subsection 3 must be effective concurrently with the registration of the applicant and must remain in effect for not less than 3 years after the expiration or termination of the registration. The surety bond, letter of credit or cash bond must be renewed each year as needed to keep it continuously in effect when the registration of the applicant is renewed unless the applicant obtains alternative security described in paragraph (a) of subsection 3 which complies with all applicable provisions of NRS 42.200 to 42.400, inclusive.
7. A surety bond, letter of credit or cash bond obtained for the purposes of subsection 3 must:
(a) Ensure that the structured settlement purchase company:
(1) Complies with the provisions of NRS 42.200 to 42.400, inclusive, which relate to a payee; and
(2) Performs its obligations to a payee pursuant to NRS 42.200 to 42.400, inclusive; and
(b) Provide a source for recovery for a payee if the payee obtains a judgment against the structured settlement purchase company for a violation of NRS 42.200 to 42.400, inclusive.
(Added to NRS by 2021, 1722)
