A Michigan contractor fails to maintain required insurance coverage during an active project. What enforcement action can LARA take?
Correct Answer
C) License suspension or revocation
LARA has authority to suspend or revoke licenses for violations including failure to maintain required insurance coverage as mandated by Michigan licensing law.
Why This Is the Correct Answer
Option C (License suspension or revocation) is correct. LARA has broad authority under Michigan's Occupational Code to suspend or revoke a contractor's license for violations of licensing requirements, including failure to maintain the mandatory insurance coverage required during active projects.
Why the Other Options Are Wrong
Option A: Mandatory retraining
Option A (Mandatory retraining) is not an enforcement mechanism LARA uses for insurance violations. Retraining may be associated with continuing education requirements or competency issues, not with regulatory infractions like lapsed insurance coverage.
Option B: Fine without license action
Option B (Fine without license action) understates LARA's authority. While fines may be part of the enforcement process, LARA can and does pursue license suspension or revocation for serious violations such as operating without required insurance — a threat to public safety.
Option D: Warning only
Option D (Warning only) is the least severe response and is insufficient for a serious ongoing violation like maintaining no insurance coverage during an active project. LARA's enforcement powers go far beyond issuing warnings.
Memory Technique
LARA's most powerful tool is license action — suspension or revocation. Think of it as the 'nuclear option' for serious violations. Insurance is required by law; failing to carry it is not a minor infraction.
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