A Nevada contractor fails to carry required workers' compensation insurance. What penalty can the Nevada Industrial Insurance System impose per day of non-compliance?
Correct Answer
A) $500
Nevada can impose penalties up to $500 per day for failure to carry required workers' compensation insurance coverage.
Why This Is the Correct Answer
Under Nevada law, the Nevada Industrial Insurance System has the authority to impose penalties of up to $500 per day for contractors who fail to maintain required workers' compensation insurance coverage. This substantial daily penalty is designed to ensure compliance with mandatory insurance requirements and protect workers. The $500 daily penalty reflects the serious nature of operating without proper workers' compensation coverage in Nevada.
Why the Other Options Are Wrong
Option B: $250
$250 per day is insufficient under Nevada law. The actual penalty amount is double this figure at $500 per day. This lower amount would not provide adequate deterrent effect for such a serious violation of workers' compensation insurance requirements.
Option C: $1,000
$1,000 per day exceeds the maximum penalty allowed under Nevada law. While this would be a strong deterrent, the actual statutory penalty is capped at $500 per day, making this amount legally incorrect for Nevada workers' compensation violations.
Option D: $100
$100 per day is far too low for Nevada's workers' compensation penalty structure. This minimal amount would not serve as an effective deterrent for contractors to maintain required insurance coverage and is significantly below the actual $500 daily penalty.
Memory Technique
Remember 'Nevada Five Hundred' - Nevada's workers' comp penalty is $500/day, like a high-stakes poker game in Las Vegas where the daily cost of non-compliance is serious money.
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