An owner asks for proof the contractor carries general liability coverage. What document is commonly requested?
Correct Answer
D) Certificate of insurance.
A certificate of insurance is commonly used to show insurance coverage information, though policy terms control actual coverage.
Why This Is the Correct Answer
A certificate of insurance is commonly used to show insurance coverage information, though policy terms control actual coverage.
Why the Other Options Are Wrong
Option A: Release payment based only on the contractor's assurance where an owner asks for proof the contractor carries general liability coverage, without matching the notices to the payment records.
Release payment based only on the contractor's assurance where an owner asks for proof the contractor carries general liability coverage, without matching the notices to the payment records. skips the written authority, scope, price, notice, or release control needed for general liability certificate.
Option B: Accept an informal payment memo where an owner asks for proof the contractor carries general liability coverage, instead of obtaining the proper payment or insurance document.
Accept an informal payment memo where an owner asks for proof the contractor carries general liability coverage, instead of obtaining the proper payment or insurance document. skips the written authority, scope, price, notice, or release control needed for general liability certificate.
Option C: Wait until final closeout to review claimant or insurance paperwork where an owner asks for proof the contractor carries general liability coverage.
Wait until final closeout to review claimant or insurance paperwork where an owner asks for proof the contractor carries general liability coverage. skips the written authority, scope, price, notice, or release control needed for general liability certificate.
Memory Technique
When commonly clashes with show, let the contract speak before Preparing Preconstruction.
Reference Hint
Study anchor (closed-book): memorize General liability certificate from CSLB Law and Business Study Guide; California Civil Code mechanics. / CSLB Law and Business Study Guide insurance requirements; know the rule or calculation trigger without relying on exam-room lookup.
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