A Nevada contractor working without required workers' compensation coverage faces what potential penalty under state law?
Correct Answer
D) License suspension and monetary penalties
Working without required workers' compensation coverage can result in license suspension by the NSCB and significant monetary penalties from the Division of Industrial Relations.
Why This Is the Correct Answer
Under Nevada law, operating without required workers' compensation insurance is a serious violation. The Nevada State Contractors Board (NSCB) can suspend the contractor's license, and the Division of Industrial Relations can impose significant monetary penalties. Both regulatory actions can occur simultaneously, making license suspension and monetary penalties the correct and complete answer.
Why the Other Options Are Wrong
Option A: Increased insurance premiums
Increased insurance premiums may be a market consequence but are not a statutory penalty imposed by the state for working without coverage. The state's enforcement tools are license suspension and financial penalties, not premium adjustments.
Option B: Written warning for first offense
Nevada law does not provide for a 'written warning for first offense' when a contractor lacks required workers' compensation. The violation is treated seriously from the outset, with suspension and fines as potential immediate consequences.
Option C: Mandatory safety training only
Mandatory safety training is not the penalty for operating without workers' compensation coverage. Safety training requirements exist for other violations, but the consequence for missing WC coverage is regulatory and financial, not educational.
Memory Technique
No WC insurance = No license. Nevada takes an 'all or nothing' approach: you either have required coverage or you face suspension plus fines. There is no 'warning pass' for this violation.
More Nevada Questions
Under NRS 624, what is the minimum net worth requirement for a Class A General Contractor license in Nevada?
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According to Nevada building codes, which edition of the International Building Code (IBC) is currently adopted for commercial construction?
A contractor receives a Notice of Disciplinary Action from the NSCB. Within how many days can they request a hearing to contest the action?
Which Nevada building code edition is currently adopted for commercial construction in most Nevada jurisdictions?
What is the minimum net worth requirement for a Nevada Class A general contractor license?
A contractor's employee is injured on a Nevada job site. The contractor lacks workers' compensation insurance. What is the potential penalty under NRS 624?
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A general contractor hires a subcontractor who injures a worker on site. The subcontractor has no workers' compensation insurance. Under Nevada law, who is primarily liable for the claim?
A Nevada contractor fails to carry required workers' compensation insurance. What penalty can the Nevada Industrial Insurance System impose per day of non-compliance?
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