EstatePass
Law & BusinessEmploymentmedium19% of exam part

A contractor's workers' compensation policy expires next week while employees remain scheduled. What should be done?

Correct Answer

B) Maintain coverage.

A contractor with employees must maintain valid workers' compensation coverage.

Answer Options
A
Delay permit.
B
Maintain coverage.
C
Expense reimbursement.
D
Delete payroll.

Why This Is the Correct Answer

A contractor with employees must maintain valid workers' compensation coverage.

Why the Other Options Are Wrong

Option A: Delay permit.

Delay permit. misses the specific employer duty in workers' compensation coverage; it does not resolve the pay, reimbursement, status, timing, or record issue.

Option C: Expense reimbursement.

Expense reimbursement. misses the specific employer duty in workers' compensation coverage; it does not resolve the pay, reimbursement, status, timing, or record issue.

Option D: Delete payroll.

Delete payroll. misses the specific employer duty in workers' compensation coverage; it does not resolve the pay, reimbursement, status, timing, or record issue.

Memory Technique

Workers' file for Checking License: who controlled it, who paid it, where is proof?

Reference Hint

Study anchor (closed-book): memorize Workers' compensation coverage from CSLB Workers' Compensation Requirements; CSLB Workers' Compensation. / CSLB workers compensation requirements when employing anyone; know the rule or calculation trigger without relying on exam-room lookup.

Was this explanation helpful?

More Law & Business Questions

People Also Study

Related Study Resources

Practice More Contractor Exam Questions

Access all practice questions with progress tracking and adaptive difficulty to pass your contractor license exam.

Start Practicing

Disclaimer: EstatePass is an independent exam preparation platform and is not affiliated with, endorsed by, or connected to any state contractor licensing board, the Construction Industry Licensing Board (CILB), the Department of Business and Professional Regulation (DBPR), NASCLA, Pearson VUE, PSI, or any government agency. Exam requirements, fees, and regulations change frequently. Always verify current requirements with your state's licensing board before making decisions. Information shown was last verified on the dates indicated and may not reflect the most recent changes.