Nevada Administrative Code Chapter 691B - Sureties
Nevada Administrative Code (NAC) – Chapter 691B: Sureties outlines regulatory requirements related to surety insurance and suretyship in the state of Nevada. This chapter works in tandem with NRS 691B and governs the issuance and administration of surety bonds and the obligations of surety insurers.
🔹 Overview of NAC Chapter 691B – Sureties
While the Nevada Administrative Code (NAC) Chapter 691B is relatively limited in scope, here’s what it typically addresses:
Key Topics (based on NAC and NRS structure):
Definitions:
Clarifies terms like "surety," "principal," "obligee," and "bond" as used in surety contracts.
Requirements for Surety Insurers:
Only authorized insurers licensed in Nevada can issue surety bonds.
Must meet financial and regulatory requirements as laid out in NRS Title 57, particularly Chapter 691B.
Obligations of the Surety:
Sureties are obligated to honor claims made under bonds when the principal fails to perform.
Insurers must comply with conditions and timelines for payment and claims handling.
Cancellation and Continuation:
Rules on how and when a surety bond can be cancelled or continued (e.g., with advance notice to obligees and regulatory approval).
Automatic continuation clauses may apply to some types of surety bonds unless specifically cancelled.
Records and Filings:
Surety insurers may be required to file certain bonds or reports with the Division of Insurance.
Electronic filing rules may apply to standard forms used in public or commercial suretyship.
Regulation of Rates and Forms:
Surety bond forms and rates may be subject to prior approval or filing, depending on the class of business.
Some commercial surety bonds may be exempt from rate filing under NRS exceptions.
📜 Related Statute: NRS 691B
The parent statute (Nevada Revised Statutes Chapter 691B) provides more specific authority and provisions such as:
General rules governing suretyship
Types of bonds (e.g., judicial, fiduciary, license and permit)
Special provisions for public official bonds
Enforcement and discharge of obligations
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