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Nevada Low Voltage Practice study materials
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Nevada Low Voltage Practice practice questions

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Question 1Licensing Qualifications

In Nevada, which state agency issues the license that authorizes a contractor to perform low voltage work for the public?

  1. The Nevada State Contractors Board Correct answer.
  2. The Nevada Department of Business and Industry, Division of Insurance
  3. The Public Utilities Commission of Nevada
  4. The local building department of the county where the work is performed

Explanation

Contractor licensing in Nevada is administered by the Nevada State Contractors Board, which classifies and licenses contractors, including those who install low voltage systems. Local building departments issue permits and inspect work but do not issue the state contractor license. The Public Utilities Commission regulates utilities, not contractors.

Question 2Licensing Qualifications

A person performs low voltage installations for compensation without holding a valid Nevada contractor license. What is the most accurate description of the consequence under Nevada law?

  1. Unlicensed contracting is subject to administrative citations and civil penalties, and contracts may be unenforceable Correct answer.
  2. The work is lawful if the person is supervised by a licensed electrician
  3. Only a written warning may be issued for a first offense
  4. Liability falls solely on the property owner who hired the person

Explanation

Nevada treats contracting without the required license as a violation enforceable through the Board, with citations, civil penalties and possible loss of the ability to enforce the contract. Supervision by another licensee does not cure the absence of the required license for the person performing the work. The owner's hiring decision does not shift the statutory violation away from the unlicensed contractor.

Question 3Licensing Qualifications

Which classification category on a Nevada contractor license best fits a firm whose scope is installing and servicing low voltage alarm, sound and communication wiring?

  1. Class AB combination
  2. Class C specialty Correct answer.
  3. Class A general engineering
  4. Class B general building

Explanation

Nevada groups contractors into general engineering (A), general building (B), and specialty (C) classifications, and low voltage systems work falls within the specialty category. Class A and Class B cover broad construction of engineering and building projects rather than a discrete trade scope. The AB combination merely joins the two general classifications.

Question 4Licensing Qualifications

An applicant for a Nevada specialty contractor license must demonstrate qualifying experience. Which requirement best reflects how that experience is typically established?

  1. A letter of recommendation from a supplier
  2. Documented journey-level experience verified by a qualified individual associated with the applicant Correct answer.
  3. Proof of a four-year college degree in any field
  4. Submission of a resume listing any construction jobs held

Explanation

Nevada requires the applicant to show qualifying experience in the trade, documented and attested by the individual who will serve as the qualifier for the license. The experience must be relevant to the classification requested, not merely general construction employment. A degree or supplier reference does not by itself establish trade experience.

Question 5Licensing Qualifications

What role does the qualifying individual play for a licensed Nevada contractor?

  1. They provide financing for the company's projects
  2. They serve as the licensed contractor's designated representative responsible for the contractor's construction operations Correct answer.
  3. They perform annual safety inspections of the company's job sites
  4. They act as the company's registered agent for service of process

Explanation

The qualifying individual is the person whose experience and knowledge support the license and who is responsible for the contractor's construction operations. This person must be associated with the licensee and is subject to Board requirements regarding their role. Financing, registered-agent status and outside safety inspection are separate functions.

Question 6Licensing Qualifications

A licensed Nevada contractor's qualifying individual leaves the company. What must the contractor do to maintain the license in good standing?

  1. Report the change and replace the qualifier within the period allowed by the Board Correct answer.
  2. Nothing, because the license belongs to the company permanently
  3. Transfer the license to the departing qualifier
  4. Surrender the license and reapply as a new applicant

Explanation

Nevada requires the licensee to notify the Board of the disassociation and to obtain a replacement qualifier within the timeframe the Board allows. Failure to maintain a qualifier can result in suspension or other disciplinary action against the license. The license is not automatically transferred to the departing individual.

Question 7Licensing Qualifications

Which bond is generally required of a Nevada contractor as a condition of licensing, providing protection to persons harmed by the contractor's failure to perform?

  1. A bid bond
  2. A contractor's license bond Correct answer.
  3. A performance bond on every project
  4. A payment bond for all subcontractors

Explanation

Nevada requires a contractor's license bond as a condition of licensure, and a claimant who is harmed by a license law violation may seek recovery against it. Bid, performance and payment bonds are project-specific instruments required by an owner or public entity, not a universal licensing condition.

Question 8Licensing Qualifications

What is the purpose of Nevada's contractor recovery fund as it relates to licensing?

  1. To pay the Board's operating expenses
  2. To cover the contractor's liability insurance deductibles
  3. To reimburse eligible homeowners and others who suffer certain losses caused by a licensed contractor Correct answer.
  4. To provide startup capital to new licensees

Explanation

The recovery fund exists to compensate eligible claimants who obtain a judgment or award against a licensed contractor for certain acts and cannot collect from the contractor. It is a consumer protection mechanism tied to the licensing system. It does not fund the Board's operations or provide capital to licensees.

Question 9Licensing Qualifications

Before a Nevada contractor license is issued, the applicant must show financial responsibility. Which item is most directly part of that showing?

  1. A copy of the applicant's driver license
  2. A list of the applicant's past clients
  3. A current credit report and financial statement submitted with the application Correct answer.
  4. A letter from a real estate broker

Explanation

Nevada evaluates financial responsibility through credit reports and financial statements submitted with the application, and can require a higher bond or deny licensure based on the results. A driver license, broker letter or client list does not address the applicant's financial standing.

Question 10Licensing Qualifications

An applicant is told the license will be issued only after passing a trade examination and a law and business examination. Which statement about these exams is correct for Nevada contractor licensing?

  1. Both exams are administered as part of the licensing process, and the law and business exam covers Nevada-specific requirements Correct answer.
  2. The exams are optional and used only for general contractors
  3. The law and business exam may be waived for anyone with ten years of experience
  4. Only the trade exam is required for specialty contractors

Explanation

Nevada requires applicants to pass examinations covering the trade and the laws and business practices applicable to contracting in the state. The law and business content is Nevada-specific and is not automatically waived based on years of experience. The requirement is not limited to general contractors.

Question 11Licensing Qualifications

A contractor licensed in another state wants to work in Nevada. Which statement best describes how Nevada treats that out-of-state license?

  1. The contractor must obtain a Nevada license, though the Board may consider the prior license in its review Correct answer.
  2. The contractor only needs to register with the county
  3. The out-of-state license is accepted automatically as a Nevada license
  4. The contractor may work for 90 days on the foreign license without any Nevada filing

Explanation

Nevada requires a Nevada contractor license for work performed in the state; an out-of-state license does not substitute for it. The Board may consider prior licensure and experience as part of the application review, but a Nevada license must still be obtained. County registration alone does not authorize contracting.

Question 12Licensing Qualifications

Which activity most clearly requires a Nevada contractor license when performed for compensation on a structure?

  1. Preparing a bid estimate for an owner
  2. Designing a website for a contractor
  3. Installing a low voltage data cabling system in an office building Correct answer.
  4. Delivering materials to a job site

Explanation

Installing low voltage cabling as part of construction on a structure is contracting work that requires licensure when performed for compensation. Delivering materials, preparing estimates without performing work, and unrelated professional services are not contracting activities. The physical installation of systems is the trigger.

Question 13Licensing Qualifications

Nevada's licensing scheme generally treats a single installation project as contracting when the work is performed for compensation and the total contract price exceeds a threshold. Which statement correctly describes this threshold concept?

  1. Any amount, even a few dollars, always requires a license
  2. The threshold is set separately by each city
  3. Nevada law sets a minimum contract price below which a license is not required Correct answer.
  4. The threshold applies only to electrical work

Explanation

Nevada law recognizes a minimum contract price below which a contractor license is not required, and the Board publishes the current figure. Once the project value reaches that threshold, licensure is required for the work. The threshold is set by state law rather than by individual cities.

Question 14Licensing Qualifications

A licensed Nevada contractor wants to add low voltage work to a license that currently covers only general building. What is the proper approach?

  1. Apply to add the appropriate specialty classification before performing the work Correct answer.
  2. Ask the building official to approve the added scope
  3. Perform the work and notify the Board afterward
  4. Have an employee obtain a separate license and use that license for the company's work

Explanation

A licensee may only perform work within its licensed classification, so adding a new scope requires applying for and obtaining the additional classification from the Board. Performing first and notifying later exposes the contractor to disciplinary action. Neither a building official nor an employee's separate license expands the company's classification.

Question 15Licensing Qualifications

Which item is typically required as part of a complete Nevada contractor license application package?

  1. A list of the contractor's competitors
  2. A notarized promise to hire only union labor
  3. A copy of the contractor's advertising budget
  4. Proof of general liability and workers' compensation coverage as applicable Correct answer.

Explanation

Nevada applicants must show appropriate insurance, including general liability and workers' compensation where required, along with the other application items. Labor agreements, advertising budgets and competitor lists are not licensing requirements. Insurance demonstrates the ability to respond to claims.

Question 16Licensing Qualifications

A contractor's license has lapsed for failure to renew. What is the contractor's status with respect to performing low voltage work during the lapse?

  1. The contractor may work if the client signs a waiver
  2. The contractor may work on residential projects only
  3. The contractor must stop contracting until the license is reinstated Correct answer.
  4. The contractor may continue working while the renewal is processed

Explanation

Contracting authority exists only while the license is active, so a lapsed license means the contractor must stop performing contracting work until reinstatement. A client waiver cannot restore authority that the state has withdrawn. The restriction is not limited to commercial or residential work.

Question 17Licensing Qualifications

Which statement best describes continuing education or ongoing compliance obligations tied to maintaining a Nevada contractor license?

  1. Licensees must submit monthly project reports to the Board
  2. Licensees must comply with renewal requirements and respond to Board inquiries and disciplinary processes Correct answer.
  3. No ongoing obligations exist once the license is issued
  4. Licensees must retake the full trade exam every year

Explanation

A Nevada contractor license carries continuing obligations, including timely renewal, cooperation with Board investigations, and compliance with statutes and regulations. It does not require annual re-examination or monthly reporting of every project. The license is not a one-time credential with no follow-up.

Question 18Licensing Qualifications

A homeowner complains to the Board about a licensed contractor's workmanship. Which response most accurately reflects the Board's authority?

  1. The Board may investigate the complaint and take disciplinary action, including citation, suspension or revocation Correct answer.
  2. The Board has no authority over workmanship complaints
  3. The Board may only refer the matter to the police
  4. The Board may order the contractor to refund the entire contract price without a hearing

Explanation

The Board has authority to investigate complaints against licensees and to impose discipline, which can include citations, suspension or revocation, following its process. It does not act as a criminal enforcement agency for workmanship disputes. Discipline is imposed through established procedures rather than by unilateral refund order.

Question 19Licensing Qualifications

Which of the following best describes the advertising requirement for a Nevada licensed contractor?

  1. Advertising rules apply only to general contractors
  2. Advertisements must include the contractor's license number as required by law Correct answer.
  3. Advertisements may omit the license number if the contractor has been licensed over ten years
  4. Only television advertisements require the license number

Explanation

Nevada requires licensed contractors to include their license number in advertising as specified by statute and regulation. The requirement is not waived by longevity and is not limited to one medium or one classification. Including the number lets consumers verify licensure.

Question 20Licensing Qualifications

A contractor wants to use a business name different from the name on the license. What is the proper course of action?

  1. Use the new name only on invoices, not on contracts
  2. Use the new name immediately and update the license at the next renewal
  3. Obtain Board approval for the name change and reflect it on the license before using it Correct answer.
  4. Register the name with the county and proceed

Explanation

The name under which a contractor operates must match the licensed name, so a change requires Board approval and an updated license before the new name is used. Using an unapproved name can constitute a license law violation. County registration alone does not amend the state license.

Question 21Licensing Qualifications

A licensed contractor is convicted of a crime involving fraud. How does this most likely affect the license under Nevada's licensing framework?

  1. It requires the contractor to retake only the trade exam
  2. It has no effect because licensing concerns only technical competence
  3. It automatically voids the license with no hearing
  4. It may be grounds for disciplinary action, including suspension or revocation, after Board review Correct answer.

Explanation

Certain convictions, particularly those involving fraud or dishonesty, can constitute grounds for discipline against a Nevada contractor license following the Board's review process. Licensing evaluates integrity as well as technical competence. Automatic voiding without process or a simple re-examination is not how the framework operates.

Question 22Licensing Qualifications

Which statement correctly distinguishes the roles of the Nevada State Contractors Board and a local building department for a low voltage installation project?

  1. The Board licenses the contractor, while the building department issues permits and inspects the installation Correct answer.
  2. The building department licenses the contractor, while the Board issues permits
  3. Both agencies issue the contractor license jointly
  4. Neither agency has any role in low voltage work

Explanation

The Board regulates contractor licensure, while local building departments administer permits and inspections for construction within their jurisdiction. The two functions are complementary but distinct. Low voltage work is subject to both the state licensing requirement and applicable local permitting.

Question 23Licensing Qualifications

An unlicensed person advertises low voltage services and bids on a project. Which statement best describes the licensing concern at that stage?

  1. No concern arises until physical installation begins
  2. Advertising is protected and cannot be regulated
  3. Offering to perform contracting work while unlicensed can itself violate licensing law Correct answer.
  4. Only signed contracts trigger the licensing requirement

Explanation

Nevada licensing law reaches not only performance but also offering or submitting a bid to perform contracting work without a license. The violation can occur before any installation begins. Advertising and bidding are therefore regulated activities in this context.

Question 24Licensing Qualifications

A contractor licensed as a specialty contractor is asked to take on a project that includes structural work outside the licensed classification. What is the appropriate action?

  1. Perform the structural work because the overall project is low voltage related
  2. Subcontract the structural work to an unlicensed helper
  3. Ask the owner to sign a release and proceed
  4. Decline the out-of-scope portion or arrange for a properly licensed contractor to perform it Correct answer.

Explanation

A Nevada licensee may perform only work within its licensed classification, so out-of-scope structural work must be declined or handled by a contractor holding the appropriate license. An owner release cannot authorize unlicensed scope. Using an unlicensed helper for that scope compounds the violation.

Question 25Licensing Qualifications

Which of the following best describes how Nevada treats a contractor's failure to maintain required workers' compensation coverage?

  1. It is handled only by the federal government
  2. It is permissible if the contractor has fewer than five employees
  3. It affects only the contractor's insurance premiums
  4. It can result in suspension of the license and is a compliance matter enforced by the state Correct answer.

Explanation

Maintaining required workers' compensation coverage is a condition of holding a Nevada contractor license, and failure to maintain it can lead to suspension and enforcement action. The obligation is not avoided by a small-employee exception in this licensing context. The consequences extend beyond premium adjustments.

Question 26Licensing Qualifications

A person who installs low voltage wiring for pay on a Nevada building must generally hold which of the following?

  1. A local business license only
  2. A Nevada contractor license issued by the State Contractors Board Correct answer.
  3. A Nevada real estate broker license
  4. A general engineering license from the state engineer

Explanation

Nevada requires a contractor license from the Nevada State Contractors Board for anyone who constructs, alters, or repairs a structure for compensation, and low voltage installation falls within that framework. A business license alone does not authorize contracting work.

Question 27Licensing Qualifications

Which classification category does Nevada use for a contractor whose work is limited to a specific trade rather than an entire structure?

  1. Residential contractor
  2. General building contractor
  3. General engineering contractor
  4. Specialty contractor Correct answer.

Explanation

Nevada's licensing structure separates general building, general engineering, and specialty classifications. A specialty contractor is limited to the particular trade or trades listed on the license, which is where low voltage work commonly sits.

Question 28Licensing Qualifications

An applicant for a Nevada contractor license must demonstrate knowledge of business and law by which means?

  1. Providing three client references
  2. Passing a law and business examination administered for the Board Correct answer.
  3. Submitting a notarized letter of experience
  4. Completing an OSHA safety course

Explanation

Nevada requires applicants to pass a law and business examination in addition to the trade examination for their classification. Experience letters, safety courses, and references may support an application but do not substitute for the exam.

Question 29Licensing Qualifications

What is the minimum age at which a person may hold a Nevada contractor license in their own name?

  1. 18 years Correct answer.
  2. 25 years
  3. 16 years
  4. 21 years

Explanation

Nevada requires a license applicant to be at least 18 years old and to possess the required experience and qualifications. Age is a threshold eligibility item reviewed with the application.

Question 30Licensing Qualifications

The person who must meet the experience and examination requirements and whose qualifications support a Nevada contractor license is known as which of the following?

  1. The registered agent
  2. The qualifying individual Correct answer.
  3. The project superintendent
  4. The surety representative

Explanation

Each Nevada contractor license is tied to a qualifying individual who demonstrates the required experience and passes the examinations. The license depends on that person's continued association with the business.

Question 31Licensing Qualifications

A Nevada contractor license is issued to which entity?

  1. Each individual employee of the business
  2. The property owner for whom work is performed
  3. The qualifying individual personally
  4. The business entity named on the application Correct answer.

Explanation

Nevada licenses are issued to the business, whether a sole proprietorship, partnership, corporation, or other entity, and the qualifying individual supports that license. Employees and customers do not hold the license.

Question 32Licensing Qualifications

Which document typically establishes that an applicant has the trade experience Nevada requires for a low voltage classification?

  1. A personal credit report
  2. A copy of a high school diploma
  3. A vehicle registration
  4. Signed statements from past employers or clients detailing the applicant's work Correct answer.

Explanation

Nevada evaluates experience through documented statements describing the applicant's hands-on work, including duties and dates. Credit reports, diplomas, and vehicle records do not establish trade experience.

Question 33Licensing Qualifications

A sole proprietor wants to operate as a Nevada contractor under a business name. What does the Board require regarding that name?

  1. The business name may be changed freely without notice
  2. The business name must include the words licensed contractor
  3. The business name must match the owner's legal name exactly
  4. The business name must be registered and disclosed to the Board as part of licensing Correct answer.

Explanation

Nevada requires the contractor's business name to be registered and reported so the license reflects the name actually used in advertising and contracts. Changes to the licensed name must be reported to the Board.

Question 34Licensing Qualifications

An applicant submits a license application but the qualifying individual has not yet passed the required examinations. What is the effect on issuance?

  1. The license issues with a reduced monetary limit
  2. The license cannot be issued until the examination requirements are satisfied Correct answer.
  3. The license issues on a provisional basis for one year
  4. The license issues but bars bidding on public work

Explanation

Passing the required trade and law and business examinations is a condition of licensure in Nevada. Until the qualifier satisfies the exam requirement, the Board cannot complete issuance.

Question 35Licensing Qualifications

A qualifying individual plans to leave a Nevada contracting business but the business wants to keep operating. What is the most appropriate step?

  1. Continue operating while searching for a replacement with no notification
  2. Replace the qualifier with another individual who meets the qualification requirements and notify the Board Correct answer.
  3. Transfer the license to the departing qualifier's new employer
  4. Suspend all bidding but keep advertising as licensed

Explanation

A Nevada license depends on a qualified individual being associated with the business. When the qualifier disassociates, the business must promptly notify the Board and secure a replacement who meets the experience and examination requirements.

Question 36Licensing Qualifications

A contractor licensed only for a low voltage specialty is offered a project that also requires framing and structural alterations. What should the contractor do?

  1. Subcontract the structural work to an unlicensed helper
  2. Decline the out-of-scope work or arrange for a properly licensed contractor to perform it Correct answer.
  3. Perform all the work because the low voltage portion is the majority
  4. Perform the structural work and disclose it afterward

Explanation

A Nevada license authorizes only the classifications and scope shown on it. Work outside that scope must be performed by a contractor holding the appropriate classification, so the specialty contractor must decline or arrange proper coverage.

Question 37Licensing Qualifications

An out-of-state low voltage contractor wants to perform a single project in Nevada. Which statement best describes Nevada's approach?

  1. The contractor may work under the home-state license without notifying anyone
  2. The contractor may work if the property owner signs a waiver
  3. The contractor may work if the project lasts less than thirty days
  4. The contractor must obtain a Nevada contractor license before contracting for the work Correct answer.

Explanation

Nevada does not offer reciprocity that lets an out-of-state license substitute for a Nevada license on in-state work. The contractor must be licensed by the Nevada State Contractors Board before contracting.

Question 38Licensing Qualifications

An unlicensed person submits a bid and advertises low voltage installation services in Nevada. Which statement best describes the Board's authority?

  1. The Board may investigate and pursue disciplinary or legal action for unlicensed contracting Correct answer.
  2. Only the local building department may act
  3. Only a private civil suit by the customer is available
  4. The Board has no authority because no license was ever issued

Explanation

Nevada law authorizes the Board to act against unlicensed contracting, including advertising and bidding for work that requires a license. Civil remedies may also exist, but they are not the exclusive response.

Question 39Licensing Qualifications

A licensed contractor wants to use a fictitious business name in advertising that differs from the name currently on the license. What is the correct action?

  1. Add the name to business cards without notifying the Board
  2. Use the name immediately and update the license at the next renewal
  3. Use the name only on social media to avoid the reporting requirement
  4. Register the name and report the change so the license reflects it before advertising Correct answer.

Explanation

Nevada requires the licensed name to match how the contractor presents itself to the public. A new or fictitious business name must be registered and reported so the license reflects the name used in advertising and contracts.

Question 40Licensing Qualifications

A contractor's license has expired because the contractor failed to renew it. What is the contractor's status regarding new low voltage contracts?

  1. The contractor may contract only for residential customers
  2. The contractor is unlicensed and may not contract for new work until reinstated Correct answer.
  3. The contractor may contract if the qualifying individual remains employed
  4. The contractor may continue contracting during a grace period of six months

Explanation

Once a Nevada contractor license lapses, the holder loses the authority to contract for work requiring a license. The contractor must reinstate or obtain a new license before entering new contracts.

Question 41Licensing Qualifications

An applicant has passed the trade examination and the law and business examination and has had the required experience verified. Which conclusion follows?

  1. The applicant no longer needs a qualifying individual
  2. The applicant is exempt from bonding
  3. The applicant is already licensed and may begin work
  4. The applicant has met the core qualification requirements but issuance still depends on completing the remaining application items Correct answer.

Explanation

Examinations and verified experience are central qualification requirements, but Nevada also requires items such as financial responsibility and bonding before a license issues. Passing the exams does not by itself create a license.

Question 42Licensing Qualifications

A contractor licensed in Nevada for several years is convicted of a felony involving fraud in connection with a construction project. How does this most likely affect the license?

  1. The conviction affects only the qualifying individual's personal record
  2. The conviction may be grounds for disciplinary action, including suspension or revocation Correct answer.
  3. The Board must wait until the criminal appeal period ends before acting
  4. The license is automatically renewed because it predates the conviction

Explanation

Nevada treats certain convictions, especially those involving fraud or dishonesty, as grounds for discipline against the license. The Board may investigate and impose sanctions such as suspension or revocation.

Question 43Licensing Qualifications

Which statement best distinguishes the Nevada State Contractors Board from a local building department in the licensing context?

  1. The building department disciplines licensees, while the Board enforces building codes
  2. The Board issues and disciplines contractor licenses, while the building department issues permits and inspects work Correct answer.
  3. Both issue contractor licenses, but the Board handles only residential work
  4. The Board issues building permits, while the building department issues contractor licenses

Explanation

The Board administers contractor licensing and discipline, while local building departments administer permits and code inspections. A contractor generally needs both a state license and local permits to perform work.

Question 44Licensing Qualifications

A contractor is required to maintain workers' compensation coverage for employees but allows the policy to lapse. What is the most likely consequence for the Nevada license?

  1. The license may be suspended until compliant coverage is restored Correct answer.
  2. The license is transferred to the employees
  3. The license remains fully valid because coverage is a private matter
  4. The license converts to a specialty classification

Explanation

Maintaining required workers' compensation coverage is a continuing condition of holding a Nevada contractor license. A lapse can lead to suspension or other discipline until proof of coverage is restored.

Question 45Licensing Qualifications

A homeowner files a complaint with the Board about a licensed contractor's low voltage workmanship. Which response most accurately reflects the Board's role?

  1. The Board may investigate the complaint and take disciplinary action if violations are found Correct answer.
  2. The Board will dismiss the complaint because workmanship is a private contract matter
  3. The Board will mediate the dispute but cannot discipline the licensee
  4. The Board will refer all complaints to the contractor's bonding company for payment

Explanation

The Board has authority to investigate complaints against licensed contractors and to impose discipline where it finds violations of licensing law. It is not limited to mediation, and workmanship complaints can be within its jurisdiction.

Question 46Licensing Qualifications

An applicant's license application lists a qualifying individual who will hold only a minor ownership interest in the business. What does Nevada require regarding that arrangement?

  1. The qualifier must reside in the same county as each project
  2. The qualifier must own at least fifty-one percent of the business
  3. The qualifier must be a bona fide officer, partner, owner, or employee actively engaged in the business Correct answer.
  4. The qualifier must be a licensed architect

Explanation

Nevada requires the qualifying individual to be genuinely associated with the business as an officer, partner, owner, or employee and to be actively involved. A nominal title without real participation does not satisfy the requirement.

Question 47Licensing Qualifications

A contractor licensed as a general building contractor wants to perform low voltage work that is classified as a specialty trade. Which statement best describes the licensing analysis?

  1. The contractor may perform the work if no specialty licensee bids
  2. The contractor should confirm the scope is covered and obtain the appropriate classification if it is not Correct answer.
  3. The contractor may perform the work under the general license if the value is small
  4. The general building license automatically covers every specialty trade

Explanation

Scope of practice is determined by the classifications on the license, and a general building license does not necessarily cover every specialty trade. The contractor should verify coverage and add the appropriate classification when needed.

Question 48Licensing Qualifications

A contractor's license lists a monetary limit that is lower than the value of a proposed low voltage project. What is the proper course of action?

  1. Have the customer sign a waiver of the limit
  2. Split the project into several contracts to stay under the limit
  3. Sign the contract and request an increase afterward
  4. Request an increase in the monetary limit before contracting for the project Correct answer.

Explanation

Nevada licenses carry a monetary limit that caps the value of contracts a licensee may take. The contractor must obtain an increase before entering a contract that exceeds the limit; splitting or waivers do not avoid the restriction.

Question 49Licensing Qualifications

An individual who is not licensed forms a corporation and applies for a Nevada contractor license using another person's experience and exam results without that person's genuine involvement. What is the likely outcome?

  1. The license will issue because the corporation itself holds the qualifications
  2. The license will issue on a temporary basis pending an audit
  3. The license will issue because exam results belong to the business
  4. The application may be denied or the license disciplined because the qualifier must be genuinely associated with the business Correct answer.

Explanation

Nevada requires the qualifying individual to be a real participant in the licensed business. Using another person's credentials without genuine involvement is a misrepresentation that can lead to denial or discipline.

Question 50Licensing Qualifications

Which statement best describes how a Nevada contractor's failure to maintain required workers' compensation coverage differs from a failure to maintain the required contractor's bond?

  1. Only the bond is a continuing condition, while workers' compensation is a one-time application item
  2. Only workers' compensation is a continuing condition, while the bond is optional after issuance
  3. Both are continuing licensing conditions, though they protect different parties and are enforced through separate compliance mechanisms Correct answer.
  4. Neither is a continuing condition once the license is issued

Explanation

Nevada treats both workers' compensation coverage and the contractor's bond as ongoing conditions of licensure. The bond protects persons harmed by the contractor's conduct, while workers' compensation protects employees, and each has its own compliance tracking.