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A workers' compensation cancellation notice arrives while employees remain scheduled. What is the safest compliance response?

Correct Answer

A) Resolve coverage.

Workers' compensation coverage must be maintained when employees are working; cancellation requires immediate resolution.

Answer Options
A
Resolve coverage.
B
Release payment based only on the contractor's assurance where a workers' compensation cancellation notice arrives while employees remain scheduled, without reconciling the waiver or coverage paperwork first.
C
Accept an informal payment memo where a workers' compensation cancellation notice arrives while employees remain scheduled, instead of confirming the lien or coverage paperwork first.
D
Wait until final closeout to review claimant or insurance paperwork where a workers' compensation cancellation notice arrives while employees remain scheduled.

Why This Is the Correct Answer

Workers' compensation coverage must be maintained when employees are working; cancellation requires immediate resolution.

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