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A contractor with employees lets workers' compensation coverage lapse. What is the main licensing compliance issue?

Correct Answer

A) Coverage lapse.

A contractor with employees must maintain workers' compensation coverage; a lapse creates compliance risk.

Answer Options
A
Coverage lapse.
B
Release payment based only on the contractor's assurance where a contractor with employees lets workers' compensation coverage lapse, without verifying the claimant documents before payment.
C
Accept an informal payment memo where a contractor with employees lets workers' compensation coverage lapse, instead of requiring the document that matches the payment status.
D
Wait until final closeout to review claimant or insurance paperwork where a contractor with employees lets workers' compensation coverage lapse.

Why This Is the Correct Answer

A contractor with employees must maintain workers' compensation coverage; a lapse creates compliance risk.

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