1. Before a person may be licensed as a broker, the person must procure and file with the Department a good and sufficient bond in the amount of $100,000 with a corporate surety thereon licensed to do business within the State of Nevada, approved as to form by the Attorney General, and conditioned that the applicant shall conduct business as a broker without breaching a consumer contract or engaging in a deceptive trade practice, fraud or fraudulent representation, and without violation of the provisions of this chapter.
2. The Department may allow a broker who provides services for more than one category of vehicle described in subsection 1 of NRS 482.345 at a principal place of business or at any branch location within the same county as the principal place of business to provide a good and sufficient bond for a single category of vehicle and may consider that single bond sufficient coverage to include all other categories of vehicles.
3. The bond must be continuous in form, and the total aggregate liability on the bond must be limited to the payment of the total amount of the bond.
4. The undertaking on the bond is for the use and benefit of the consumer and includes any breach of a consumer contract, deceptive trade practice, fraud, fraudulent representation, negligent misrepresentation, abuse of process, conversion or violation of any of the provisions of this chapter or chapter 41, 97, 104, 104A or 598 of NRS by any employee of the licensed broker who acts on behalf of the broker and within the scope of his or her employment.
5. The bond must provide that it is for the use and benefit of any consumer of the broker or an employee of the broker for any loss or damage established, including, without limitation:
(a) Actual damages;
(b) Consequential damages;
(c) Incidental damages;
(d) Statutory damages;
(e) Damages for noneconomic loss; and
(f) Attorney’s fees and costs.
The surety issuing the bond shall appoint the Commissioner of Insurance as its agent to accept service of notice or process for the surety in any action upon the bond brought in a court of competent jurisdiction or brought before the Director.
6. If a consumer has a claim for relief against a broker or an employee of the broker, the consumer may:
(a) Bring and maintain an action in any court of competent jurisdiction. If the court enters:
(1) A judgment on the merits against the broker or employee, the judgment is binding on the surety.
(2) A judgment other than on the merits against the broker or employee, including, without limitation, a default judgment, the judgment is binding on the surety only if the surety was given notice and an opportunity to defend at least 20 days before the date on which the judgment was entered against the broker or employee.
(b) Apply to the Director, for good cause shown, for compensation from the bond. The Director may determine the amount of compensation and the consumer to whom it is to be paid. The surety shall then make the payment.
(c) Settle the matter with the broker or employee. If such a settlement is made, the settlement must be reduced to writing, signed by both parties and acknowledged before any person authorized to take acknowledgments in this State, and submitted to the Director with a request for compensation from the bond. If the Director determines that the settlement was reached in good faith and there is no evidence of collusion or fraud between the parties in reaching the settlement, the surety shall make the payment to the consumer in the amount agreed upon in the settlement.
7. Any judgment entered by a court in favor of a consumer and against a broker or an employee of the broker may be executed through a writ of attachment, garnishment, execution or other legal process, or the consumer in whose favor the judgment was entered may apply to the Director for compensation from the bond of the broker or employee.
8. As used in this section, "consumer" means any person who comes into possession of a vehicle as a final user for any purpose other than offering it for sale.
(Added to NRS by 1995, 2363; A 2001, 1889; 2007, 3208; 2013, 480; 2017, 804)