You have 90 days from the date your passport was issued to report that you have not yet received it in the mail. If you do not report the non-receipt of your passport within 90 days of the issue date, you will be required to reapply and submit the full passport fee.
The best time of year to see the Northern Lights in Iceland is between the months of September and March. To be in with a really strong chance to witness the northern lights a cloudless, clear sky is the main requirement with the outside temperature being cold but dry.
Here is a post on exactly this subject http://www.northernlightsiceland.com/best-place-to-see-northern-lights/ In general you can see the lights anywhere in Iceland, however there are couple of factors that are important to look at.nfortunately the Aurora Borealis isn't that predictable, having spent 5 weeks in Iceland and about 4 years in total in Norway, Sweden and Finland, the best time to see this phenomenen is obviously ONLY at night.