A subcontract requires $1,000,000 liability coverage, but the certificate shows $500,000. What should be corrected?
Correct Answer
C) Coverage limit.
The certificate should show coverage meeting the contract requirement or the discrepancy should be resolved.
Why This Is the Correct Answer
The certificate should show coverage meeting the contract requirement or the discrepancy should be resolved.
Why the Other Options Are Wrong
Option A: The certificate holder name alone should be changed while the lower coverage limit remains.
The certificate holder name alone should be changed while the lower coverage limit remains. skips the written authority, scope, price, notice, or release control needed for insurance certificate.
Option B: The subcontractor can start work because any certificate amount is acceptable once a certificate is on file.
The subcontractor can start work because any certificate amount is acceptable once a certificate is on file. skips the written authority, scope, price, notice, or release control needed for insurance certificate.
Option D: The contractor should wait until final payment to compare certificate limits with the subcontract.
The contractor should wait until final payment to compare certificate limits with the subcontract. skips the written authority, scope, price, notice, or release control needed for insurance certificate.
Memory Technique
Reviewing Subcontractor contract math: approved scope is the ruler for insurance certificate.
Reference Hint
Study anchor (closed-book): memorize Insurance certificate from CSLB 2026 Law Book; CSLB workers' compensation guidance; California. / CSLB Law Book insurance study concepts; know the rule or calculation trigger without relying on exam-room lookup.
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