1. 1. Except as otherwise provided in subsection 6 and NRS 449B.575, each intermediary service organization shall, when applying for a certificate or renewing a certificate, file with the Administrator of the Health Care Purchasing and Compliance Division of the Nevada Health Authority a surety bond:

   1. (a) If the intermediary service organization employs less than 7 employees, in the amount of $5,000;
   2. (b) If the intermediary service organization employs at least 7 but not more than 25 employees, in the amount of $25,000; or
   3. (c) If the intermediary service organization employs more than 25 employees, in the amount of $50,000.
2. 2. A bond filed pursuant to this section must be executed by the intermediary service organization as principal and by a surety company as surety. The bond must be payable to the Aging and Disability Services Division of the Department of Human Services and must be conditioned to provide indemnification to an older patient whom the Attorney for the Rights of Older Persons and Persons with a Physical Disability, an Intellectual Disability or a Developmental Disability determines has suffered property damage as a result of any act or failure to act by the intermediary service organization to protect the property of the older patient.
3. 3. Except when a surety is released, the surety bond must cover the period of the initial certificate to operate or the period of the renewal, as appropriate.
4. 4. A surety on any bond filed pursuant to this section may be released after the surety gives 30 days’ written notice to the Administrator of the Health Care Purchasing and Compliance Division of the Nevada Health Authority, but the release does not discharge or otherwise affect any claim filed by an older patient for property damaged as a result of any act or failure to act by the intermediary service organization to protect the property of the older patient alleged to have occurred while the bond was in effect.
5. 5. A certificate is suspended by operation of law when the intermediary service organization is no longer covered by a surety bond as required by this section or by a substitute for the surety bond pursuant to NRS 449B.575. The Administrator of the Health Care Purchasing and Compliance Division of the Nevada Health Authority shall give the intermediary service organization at least 20 days’ written notice before the release of the surety or the substitute for the surety, to the effect that the certificate will be suspended by operation of law until another surety bond or substitute for the surety bond is filed in the same manner and amount as the bond or substitute being terminated.
6. 6. The requirement of filing a surety bond set forth in this section does not apply to an intermediary service organization that is operated and maintained by the State of Nevada or an agency thereof.
7. 7. As used in this section, “older patient” means a patient who is 60 years of age or older.

(Added to NRS by 2025, 943)