Bond for defense of action.
1. Before any unauthorized insurer files or causes to be filed any pleading in any court action, suit or proceeding or any notice, order, pleading or process in an administrative proceeding before the Commissioner instituted against such person or insurer, by service made as provided in NRS 685B.050, such insurer shall either:
(a) Deposit with the clerk of the court in which such action, suit or proceeding is pending, or with the Commissioner in administrative proceedings before the Commissioner, cash or securities, or file with such clerk or the Commissioner a bond with good and sufficient sureties, to be approved by the clerk or the Commissioner in an amount to be fixed by the court or Commissioner sufficient to secure the payment of any final judgment which may be rendered in such action or administrative proceeding; or
(b) Procure a certificate of authority to transact the business of insurance in this state. In considering the application of an insurer for a certificate of authority, for the purposes of this paragraph the Commissioner need not assert the provisions of NRS 680A.330 against such insurer with respect to its application if he determines that such company would otherwise comply with the requirements for such certificate of authority.
2. The Commissioner, in any administrative proceeding in which service is made as provided in NRS 685B.050, may in his discretion order such postponement as may be necessary to afford the defendant reasonable opportunity to comply with the provisions of paragraph (a) of subsection 1 and to defend such action.
3. Nothing in subsection 1 shall be construed to prevent an unauthorized insurer from filing a motion to quash a writ or to set aside service thereof made in the manner provided in NRS 685B.050, on the ground that such unauthorized insurer has not done any of the acts enumerated in NRS 685B.030.
Last modified: February 27, 2006