A policy cancellation notice arrives for workers' compensation while employees are still scheduled. What should management do?
Correct Answer
D) Resolve coverage.
Workers' compensation coverage must be maintained when employees are working; cancellation requires immediate resolution.
Why This Is the Correct Answer
Workers' compensation coverage must be maintained when employees are working; cancellation requires immediate resolution.
Why the Other Options Are Wrong
Option A: Invoice backup review.
Invoice backup review. misses the specific employer duty in workers' compensation coverage; it does not resolve the pay, reimbursement, status, timing, or record issue.
Option B: Claim reserve.
Claim reserve. misses the specific employer duty in workers' compensation coverage; it does not resolve the pay, reimbursement, status, timing, or record issue.
Option C: Ask inspector.
Ask inspector. misses the specific employer duty in workers' compensation coverage; it does not resolve the pay, reimbursement, status, timing, or record issue.
Memory Technique
Worker money labels stay separate for Reviewing Payroll: wage, premium, reimbursement, record.
Reference Hint
Study anchor (closed-book): memorize Workers' compensation coverage from CSLB 2026 Law Book; CSLB workers' compensation guidance; California. / CSLB workers compensation requirements; California Labor Code; know the rule or calculation trigger without relying on exam-room lookup.
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