1. The Commissioner may require a private professional guardian company to maintain equity, fidelity and surety bonds in amounts that are more than the minimum required initially or at any subsequent time based on the Commissioner’s assessment of the risks associated with the business plan of the private professional guardian or other information contained in the application, the Commissioner’s investigation of the application or any examination of or filing by the private professional guardian company thereafter, including, without limitation, any examination before the opening of the business. In making such a determination, the Commissioner may consider, without limitation:
(a) The nature and type of business to be conducted by the private professional guardian company;
(b) The nature and liquidity of assets proposed to be held in the account of the private professional guardian company;
(c) The amount of fiduciary assets projected to be under the management or administration of the private professional guardian company;
(d) The type of fiduciary assets proposed to be held and any proposed depository of such assets;
(e) The complexity of the fiduciary duties and degree of discretion proposed to be undertaken by the private professional guardian company;
(f) The competence and experience of the proposed management of the private professional guardian company;
(g) The extent and adequacy of proposed internal controls;
(h) The proposed presence of annual audits by an independent certified public accountant, and the scope and frequency of such audits, whether they result in an opinion of the accountant and any qualifications to the opinion;
(i) The reasonableness of business plans for retaining or acquiring additional equity capital;
(j) The adequacy of fidelity and surety bonds and any additional insurance proposed to be obtained by the private professional guardian company for the purpose of protecting its fiduciary assets;
(k) The success of the private professional guardian company in achieving the financial projections submitted with its application for a license; and
(l) The fulfillment by the private professional guardian company of its representations and its descriptions of its business structures and methods and management set forth in its application for a license.
2. A private professional guardian company shall require fidelity bonds in the amount of at least $25,000 on each natural person who acts in any capacity within the private professional guardian company to indemnify the company against loss due to any dishonest, fraudulent or criminal act or omission by a person upon whom a bond is required pursuant to this section who acts alone or in combination with any other person. A bond required pursuant to this section may be in any form and may be paid for by the private professional guardian company.
3. A private professional guardian company shall obtain suitable insurance against burglary, robbery, theft and other hazards to which it may be exposed in the operation of its business.
4. A private professional guardian company shall obtain suitable surety bonds in accordance with NRS 159.065 or 159A.065, as applicable.
5. The surety bond obtained pursuant to subsection 4 must be in a form approved by a court of competent jurisdiction and the Division and conditioned that the applicant conduct his or her business in accordance with the requirements of this chapter. The bond must be made and executed by the principal and a surety company authorized to write bonds in this State.
6. A private professional guardian company shall at least annually prescribe the amount or penal sum of the bonds or policies of the company and designate the sureties and underwriters thereof, after considering all known elements and factors constituting a risk or hazard. The action must be recorded in the minutes kept by the private professional guardian company and reported to the Commissioner.
7. The bond must cover all matters placed with the private professional guardian company during the term of the license or a renewal thereof.
8. An action may not be brought upon any bond after 2 years from the revocation or expiration of the license.
9. After 2 years, all liability of the surety or sureties upon the bond ceases if no action is commenced upon the bond.
(Added to NRS by 2015, 2353; A 2017, 907, 2430)