Section 394.480 - Surety bond required of certain institutions; Commission authorized to require additional bond; release of surety on bond; suspension of agent's permit if institution not covered by bond1. Notwithstanding the provisions of NRS 100.065 to the contrary, each: (a) Postsecondary educational institution initially licensed on or after July 1, 1995, shall file with the Administrator a surety bond in the amount of $10,000 or in a greater amount determined by the Commission for the period of the initial license to operate, including any provisional period.(b) Postsecondary educational institution or other entity which is authorized to employ one or more agents in this State shall file with the Administrator a surety bond in the amount of $10,000 or in a greater amount determined by the Commission for the period of the agent's permit.(c) Postsecondary educational institution that poses a financial risk to the students who are enrolled in the institution, as determined by the Commission, shall file with the Administrator a surety bond in the amount of $10,000 or in a greater amount determined by the Commission for a period that the Commission determines is appropriate.(d) Postsecondary educational institution that files for a change of ownership shall file with the Administrator a surety bond in the amount of $10,000 or in a greater amount determined by the Commission for the period of the initial license to operate issued to the new owner, including any provisional period.(e) Postsecondary educational institution may be required by the Commission to file a new or supplementary bond in an amount and for a period determined appropriate by the Commission if the Commission determines that the current bond filed by the institution is insufficient to cover all claims, accrued or contingent, against the institution.2. The bond required of a postsecondary educational institution pursuant to subsection 1 must be executed by the entity that owns the institution as principal, by a surety company as surety and by a licensed insurance agent residing in this State. The bond must be payable to the State of Nevada and must be conditioned to provide indemnification to any student, enrollee or his or her parent or guardian determined by the Commission to have suffered damage as a result of any act by the postsecondary educational institution that is a violation of NRS 394.383 to 394.560, inclusive. The bonding company shall provide indemnification upon receipt of written notice of the determination by the Commission. The bond may be continuous, but regardless of the duration of the bond the aggregate liability of the surety does not exceed the penal sum of the bond.3. A surety on any bond filed pursuant to this section may be released after the surety gives 30 days' written notice to the Administrator, but the release does not discharge or otherwise affect any claim filed by a student, enrollee or his or her parent or guardian for damage resulting from any act of the postsecondary educational institution or agent alleged to have occurred while the bond was in effect, or for an institution's ceasing operations during the term for which tuition had been paid while the bond was in force.4. A license or an agent's permit is suspended by operation of law when the institution or agent is no longer covered by a surety bond as required by this section. The Administrator shall give the institution or agent, or both, at least 20 days' written notice before the release of the surety, to the effect that the license or permit will be suspended by operation of law until another surety bond is filed in the same manner and amount as the bond being terminated.5. If any student is entitled to a refund from an institution pursuant to any provision of NRS 394.383 to 394.560, inclusive, the surety shall provide indemnification.Added to NRS by 1975, 1514; A 1979, 1633; 1985, 998; 1989, 1464; 1995, 327; 1997, 1412; 2001, 546; 2005, 637Added to NRS by 1975, 1514; A 1979, 1633; 1985, 998; 1989, 1464; 1995, 327; 1997, 1412; 2001, 546; 2005, 637