y. (Added to NRS by 1987, 1251) NRS 689.475 “Prepaid contract” defined. 1. “Prepaid contract” means any contract under which, for a specified consideration paid in advance in a lump sum or by installments, a person promises, either before or upon the death of a beneficiary named in or otherwise ascertainable from the contract, to provide burial services and to furnish adaptable or suitable personal property, merchandise, supplies or facilities in connection with such services. 2. “Prepaid contract” does not include a contract of insurance or any instrument in writing whereby any charitable, religious, benevolent or fraternal benefit society, corporation, association, institution or organization, not having for its object or purpose pecuniary profit, promises or agrees to embalm, inter or otherwise dispose of the remains of any person, or to procure or pay the expenses, or any part thereof, for embalming, interring or otherwise disposing of the remains of any person. (Added to NRS by 1987, 1252) NRS 689.480 Applicability. 1. It is unlawful for any person to receive, hold, control or manage money or proceeds received or derived from the sale of, or from a contract to sell, any personal property, equipment, merchandise or supplies of any description not then already existing, available, deliverable and suitable for use in, or for the performance of, any services connected with the interment, entombment or inurnment of the remains of any deceased person, whether any such payment is made in lump sum or on an installment basis, before the demise of the contract beneficiary for whom purchased, unless the provisions of NRS 689.450 to 689.595, inclusive, are complied with. 2. The provisions of subsection 1 do not apply to: (a) The sale of grave plots, interests in land of a cemetery or space in a mausoleum vault or crypt or columbarium niche by any cemetery authority otherwise authorized to make such sales under NRS 689.450 to 689.595, inclusive, which sales must be separated and distinctly defined in any agreement for burial merchandise and services. (b) A bona fide prepaid agreement whereby a cemetery authority is to furnish burial merchandise and services to a person who has a medically diagnosed terminal illness and which agreement is entered into and fully performed by the cemetery authority within 60 days of the date medically predicted for the demise of the beneficiary named in any such agreement. (Added to NRS by 1987, 1252) NRS 689.485 Seller’s permit required; exception; administrative fine. 1. It is unlawful for any cemetery authority, or any person on behalf of a cemetery authority, to offer or sell any burial merchandise or services under a prepaid contract unless the cemetery authority has been issued a seller’s permit by the Commissioner. 2. Subsection 1 does not apply to cemeteries owned and operated by governmental agencies. 3. A person who offers or sells any burial merchandise or services under a prepaid contract in this state in violation of the provisions of this section is subject to an administrative fine of not more than $1,000 for each violation. (Added to NRS by 1987, 1252; A 1993, 2617; 2001, 2217) NRS 689.490 Permit: Application and supporting documents; fee. 1. The proposed seller, or the appropriate corporate officer of the seller, shall apply in writing to the Commissioner for a seller’s permit, showing: (a) The proposed seller’s name and address and his occupations during the preceding 5 years; (b) The name and address of the proposed trustee; (c) The names and addresses of the proposed performers, specifying what particular services, supplies and equipment each performer is to furnish under the proposed prepaid contract; and (d) Such other pertinent information as the Commissioner may reasonably require. 2. The application must be accompanied by: (a) A copy of the proposed trust agreement and a written statement signed by an authorized officer of the proposed trustee to the effect that the proposed trustee understands the nature of the proposed trust fund and accepts it; (b) A copy of each contract or understanding, existing or proposed, between the seller and performers relating to the proposed prepaid contract or items to be supplied under it; (c) A certified copy of the articles of incorporation and the bylaws of any corporate applicant; (d) A copy of any other document relating to the proposed seller, trustee, trust, performer or prepaid contract, as required by the Commissioner; (e) A complete set of his fingerprints and written permission authorizing the Commissioner to forward those fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report; (f) A fee representing the amount charged by the Federal Bureau of Investigation for processing the fingerprints of the applicant; and (g) The applicable fee established in NRS 680B.010, which is not refundable. (Added NRS by 1987, 1252; A 1993, 2617; 2003, 2869) NRS 689.495 Permit: Surety bond required. 1. Before the issuance of a permit to a seller, the seller shall post with the Commissioner and thereafter maintain in force a bond in the principal sum of $50,000 issued by an authorized corporate surety in favor of the State of Nevada, or a deposit of cash or negotiable securities or a combination of cash and negotiable securities. If a deposit is made in lieu of a bond, the deposit must at all times have a market value not less than the amount of the bond required by the Commissioner. 2. The bond or deposit must be held for the benefit of buyers of prepaid contracts, and other persons as their interests may appear, who may be damaged by misuse or diversion of money by the seller or his agents, or to satisfy any judgments against the seller for failure to perform a prepaid contract. The aggregate liability of the surety for all breaches of the conditions of the bond must not exceed the sum of the bond. The surety on the bond has the right to cancel the bond upon giving 30 days’ notice to the Commissioner and thereafter is relieved of liability for any breach of condition occurring after the effective date of the cancellation. 3. The Commissioner shall release the bond or deposit after the seller has ceased doing business as such and the Commissioner is satisfied of the nonexistence of any obligation or liability of the seller for which the bond or deposit was held. (Added to NRS by 1987, 1253; A 1993, 2617) NRS 689.500 Permit: Issuance; denial. 1. If the Commissioner finds that the application is complete, that the cemetery authority is in compliance with all requirements therefor, that the applicant otherwise qualifies under the provisions of NRS 689.450 to 689.595, inclusive, and upon satisfactory evidence that a burial merchandise and service trust fund has been established, he shall issue a seller’s permit to the applicant. 2. The Commissioner shall refuse to issue a seller’s permit to any applicant who does not comply with or otherwise meet the requirements of NRS 689.450 to 689.595, inclusive. Upon such refusal, the Commissioner shall give written notice thereof to the applicant setting forth the reasons for his refusal. (Added to NRS by 1987, 1253; A 1993, 2618) NRS 689.505 Permit: Expiration; renewal; fee for renewal. 1. Each seller’s permit issued pursuant to NRS 689.450 to 689.595, inclusive, continues in effect for 3 years unless it is suspended, revoked or otherwise terminated. 2. The Commissioner shall renew a seller’s permit upon receiving a written request for renewal from the seller, accompanied by the applicable fee for renewal, which is not refundable, if he finds that the seller is, at that time, in compliance with all applicable provisions of NRS 689.450 to 6

Vegas Law