Air Conditioning Contractor Exam
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Q1. What state agency licenses and regulates air conditioning contractors in Nevada?
A) Nevada Department of Business and Industry
B) Nevada State Contractors Board (NSCB)
C) Nevada Secretary of State
D) Nevada Labor Commissioner
Answer: B) Nevada State Contractors Board (NSCB)
Rationale: The NSCB, established under NRS 624, issues and regulates contractor
licenses in Nevada, including the C-21b Air Conditioning classification.
Q2. Contractor licensing requirements in Nevada are primarily found in which chapter
of the Nevada Revised Statutes?
A) NRS 116
B) NRS 445A
C) NRS 624
D) NRS 40
Answer: C) NRS 624
Rationale: NRS 624 is the Nevada statute governing the licensing and regulation of
contractors.
,Q3. The C-21b classification specifically authorizes a contractor to perform which type
of work?
A) Plumbing and gas fitting
B) Installation, service, and repair of air conditioning and refrigeration equipment
C) Structural steel erection
D) Swimming pool construction
Answer: B) Installation, service, and repair of air conditioning and refrigeration
equipment
Rationale: C-21b is the specialty classification for air conditioning (and related
refrigeration) work under the NSCB classification system.
Q4. Who is the "Qualified Individual" (QI) on a Nevada contractor's license?
A) The company bookkeeper
B) The individual who passed the required trade and law exams and is responsible for
the license's field operations
C) Any employee chosen at random
D) The bonding company's representative
Answer: B) The individual who passed the required trade and law exams and is
responsible for the license's field operations
Rationale: NSCB requires each license to be tied to a qualified individual who
demonstrated the necessary trade knowledge and experience.
Q5. How often must a Nevada contractor's license generally be renewed?
A) Annually
B) Every 2 years
C) Every 5 years
D) It never needs renewal once issued
Answer: B) Every 2 years
Rationale: Nevada contractor licenses are renewed on a two-year cycle, with fees
and updated information submitted to the NSCB.
,Q6. If a Qualified Individual leaves a licensed company, the board must generally be
notified within approximately:
A) 10 days
B) 30 days
C) 1 year
D) There is no notification requirement
Answer: B) 30 days
Rationale: Prompt notice is required so the NSCB can track responsible-party status;
failure to replace a QI within the allowed window can jeopardize the license.
Q7. What is the primary purpose of a contractor's license bond?
A) To guarantee the contractor's profit
B) To provide a source of recovery for parties harmed by the contractor's violation of
licensing law
C) To pay for advertising costs
D) To fund employee training
Answer: B) To provide a source of recovery for parties harmed by the contractor's
violation of licensing law
Rationale: The license bond protects consumers and the state by providing funds
recoverable for certain violations or damages caused by the licensee.
Q8. Which fund exists to help compensate homeowners for certain losses caused by a
licensed residential contractor?
A) Unemployment Insurance Fund
B) Residential Recovery Fund
C) State General Fund
D) Workers' Compensation Fund
Answer: B) Residential Recovery Fund
Rationale: Nevada maintains a Residential Recovery Fund that homeowners may
claim against under specific circumstances involving licensed contractors.
, Q9. Nevada consumer protection practice generally limits the down payment
collectible on a home improvement contract to approximately:
A) 100% of the contract price up front
B) 1/3 of the contract price or the actual cost of materials, whichever is greater,
absent an applicable exception
C) A flat $10 regardless of job size
D) No down payment may ever be collected
Answer: B) 1/3 of the contract price or the actual cost of materials, whichever is
greater, absent an applicable exception
Rationale: This limitation protects homeowners from excessive up-front payments
before work has begun; exceptions can apply depending on bonding or contract type.
Q10. Change orders on a construction contract should always be:
A) Verbal only, to save time
B) In writing and signed by both parties before the additional work proceeds
C) Ignored if the change is minor
D) Approved only by the subcontractor
Answer: B) In writing and signed by both parties before the additional work
proceeds
Rationale: Written, signed change orders protect both parties by clearly documenting
scope and price changes to the original agreement.
Q11. A contractor's license number must generally appear on:
A) Nothing is required
B) Advertising, contracts, and other materials as required by NSCB regulation
C) Only the business card
D) Only internal tax filings
Answer: B) Advertising, contracts, and other materials as required by NSCB
regulation
Rationale: NSCB regulations require the license number to be displayed on
advertising and contracts to help protect consumers and verify licensure.