According to B&P Code 7159.5, which type of contract must include a specific disclosure about the contractor's workers' compensation insurance status?
Correct Answer
D) Service and repair contracts
B&P Code 7159.5 specifically requires service and repair contracts to include disclosure of the contractor's workers' compensation insurance status. The contractor must inform the customer whether they carry workers' compensation insurance and the potential liability if they do not.
Why This Is the Correct Answer
B&P Code 7159.5 specifically mandates that service and repair contracts must include a disclosure statement regarding the contractor's workers' compensation insurance status. This requirement ensures customers are informed about potential liability issues if the contractor lacks proper insurance coverage. The disclosure must clearly state whether the contractor carries workers' compensation insurance and explain the customer's potential financial exposure if coverage is absent.
Why the Other Options Are Wrong
Option A: Change order agreements
Change order agreements are modifications to existing contracts and do not require the workers' compensation insurance disclosure specified in B&P Code 7159.5. This disclosure requirement is specifically for service and repair contracts, not contract modifications.
Option C: All home improvement contracts over $500
Swimming pool construction contracts fall under general home improvement contract requirements but are not specifically mentioned in B&P Code 7159.5 regarding workers' compensation insurance disclosure requirements. This disclosure is specifically required for service and repair contracts.
Memory Technique
Remember 'Service = Safety disclosure' - Service and repair contracts require workers' compensation Safety disclosure under 7159.5.
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