A contractor with employees keeps a workers' compensation exemption on file. What license-maintenance issue exists?
Correct Answer
C) Workers' compensation status must be corrected.
A contractor with employees must address workers' compensation coverage and exemption status; an exemption is not appropriate once employees are hired.
Why This Is the Correct Answer
A contractor with employees must address workers' compensation coverage and exemption status; an exemption is not appropriate once employees are hired.
Why the Other Options Are Wrong
Option A: The exemption becomes stronger when payroll grows.
The exemption becomes stronger when payroll grows. misses the specific employer duty in license insurance filing; it does not resolve the pay, reimbursement, status, timing, or record issue.
Option B: No update is needed if employees are part time.
No update is needed if employees are part time. misses the specific employer duty in license insurance filing; it does not resolve the pay, reimbursement, status, timing, or record issue.
Option D: File the policy with the carrier but leave the CSLB license record status unchanged.
File the policy with the carrier but leave the CSLB license record status unchanged. misses the specific employer duty in license insurance filing; it does not resolve the pay, reimbursement, status, timing, or record issue.
Memory Technique
If the job needs employees, the employer needs Checking Records proof.
Reference Hint
Study anchor (closed-book): memorize License insurance filing from CSLB licensing guidance; CSLB 2026 Law Book; California Business and. / CSLB workers compensation and license-maintenance guidance; California Labor Code; know the rule or calculation trigger without relying on exam-room lookup.
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