A contractor's workers' compensation insurance is cancelled mid-policy. According to the Business and Professions Code, how long does the contractor have to obtain replacement coverage before their license is suspended?
Correct Answer
D) 10 days
Under B&P Code Section 7125, contractors have 10 days to restore workers' compensation coverage before automatic license suspension.
Why This Is the Correct Answer
Under B&P Code Section 7125, when a workers' compensation policy is cancelled, the contractor has exactly 10 days to obtain replacement coverage. If coverage is not restored within this window, the license is automatically suspended by operation of law — no CSLB action required.
Why the Other Options Are Wrong
Option A: 30 days
30 days is incorrect. There is no 30-day grace period for workers' compensation lapses under Section 7125. This figure is sometimes associated with other license-related notices, but it does not apply here.
Option B: 15 days
15 days is incorrect. Although it sounds like a reasonable grace period, B&P Code Section 7125 specifies 10 days, not 15.
Option C: 60 days
60 days is incorrect. A 60-day window would be far too lenient given the mandatory nature of workers' compensation coverage. The statute intentionally sets a short 10-day deadline to protect workers.
Memory Technique
Think '10 days = 10 fingers = workers' hands.' Workers use their hands every day on the job — coverage cannot wait. Ten days is the absolute minimum the law allows before your license goes dark.
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