1. Except as otherwise provided in this section, at the time application is made for an agents permit, a license to operate or a license renewal, the Superintendent shall require the elementary or secondary educational institution making the application to file a good and sufficient surety bond in the sum of not less than $5,000. The bond must be executed by the applicant as principal and by a surety company qualified and authorized to do business in this state. The bond must be made payable to the State of Nevada and be conditioned to provide indemnification to any pupil, enrollee or his or her parent or guardian determined to have suffered damage as a result of any act by any elementary or secondary educational institution or its agent which is a violation of any provision of NRS 394.201 to 394.351 , inclusive, and the bonding company shall pay any final, nonappealable judgment of any court of this state that has jurisdiction, upon receipt of written notice of final judgment. 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. 2. The surety bond must cover the period of the license or the agents permit, as appropriate, except when a surety is released. 3. A surety on any bond filed pursuant to this section may be released after the surety gives 30 days written notice to the Superintendent, but the release does not discharge or otherwise affect any claim filed by a pupil, enrollee or his or her parent or guardian for damage resulting from any act of the elementary or secondary educational institution or agent which is alleged to have occurred while the bond was in effect, nor for an institutions closing operations during the term for which tuition had been paid while the bond was in force. 4. In lieu of the bond otherwise required by this section, an institution may purchase a certificate of deposit in an amount of not less than $5,000 from a financial institution insured by an agency of the Federal Government or by a private insurer approved pursuant to NRS 672.755 . The deposit may be withdrawn only on the order of the Superintendent, except that the interest may accrue to the institution. Any pupil, enrollee or his or her parent or guardian who suffers damage as the result of an act described in subsection 1 may bring and maintain an action to recover against the certificate of deposit. 5. A license or an agents 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 and no deposit has been made pursuant to subsection 4 or the deposit has been withdrawn. If a bond has been filed, the Superintendent shall give the institution or agent, or both, at least 30 days written notice before the release of the surety 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.
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