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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.

Answer Options
A
The exemption becomes stronger when payroll grows.
B
No update is needed if employees are part time.
C
Workers' compensation status must be corrected.
D
File the policy with the carrier but leave the CSLB license record status unchanged.

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.

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