What is the maximum aggregate limit required for general liability insurance for a Class B contractor in Nevada?
Correct Answer
C) $1,000,000
Nevada requires Class B contractors to maintain general liability insurance with a maximum aggregate limit of $1,000,000.
Why This Is the Correct Answer
$1,000,000 is the required maximum aggregate limit for general liability insurance for Class B contractors in Nevada. Nevada law sets this threshold to ensure adequate protection for the public against property damage and bodily injury claims arising from a general contractor's operations.
Why the Other Options Are Wrong
Option A: $100,000
$100,000 is far below the Nevada statutory minimum aggregate requirement for Class B contractors. This figure might appear in other insurance contexts (e.g., per-occurrence minimums for smaller license categories) but is not the aggregate limit for Class B.
Option B: $500,000
$500,000 is the aggregate limit associated with lower-tier Nevada contractor license categories, not Class B. Selecting this answer reflects a mix-up between license class requirements.
Option D: $300,000
$300,000 does not correspond to any standard Nevada contractor insurance aggregate limit. It is a plausible-sounding distractor that does not align with NRS/NAC requirements for any contractor class.
Memory Technique
Class B = $1,000,000 aggregate. Think 'B for Big — Big project, Big aggregate.' The 'B' stands for broad general contracting work, requiring the full million-dollar aggregate to protect the public.
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