MHIC NASCLA Contractors Practice Exam

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Prepare for the MHIC NASCLA Contractors Exam with our comprehensive quiz that includes multiple-choice questions designed to help you familiarize yourself with the exam format and increase your chances of passing. Get ready to succeed!

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What action is considered non-compliance regarding Workers Compensation Insurance?

Providing employees with health coverage
Failing to pay unemployment taxes
Not registering for Workers Compensation Insurance
None of the above

The correct answer is: Not registering for Workers Compensation Insurance

Non-compliance regarding Workers Compensation Insurance occurs when an employer does not register for this specific type of insurance. Workers Compensation Insurance is mandated in most states to protect employees who may be injured on the job, providing them with benefits for medical expenses and lost wages due to work-related injuries. Therefore, failing to register for this coverage directly violates legal requirements. Providing health coverage to employees does not fall under the category of Workers Compensation, as health insurance serves a different purpose. Moreover, not paying unemployment taxes is a separate legal obligation that pertains to job loss benefits rather than workplace injuries. In summary, the act of not registering for Workers Compensation Insurance clearly represents a failure to comply with the regulations aimed at safeguarding employees in the event of workplace accidents, making it the correct choice in identifying non-compliance in this context.