A contractor's workers' compensation policy in Alabama has been cancelled. How many days does the contractor have to obtain new coverage before their license may be suspended?
Correct Answer
C) 10 days
Alabama requires contractors to obtain new workers' compensation coverage within 10 days of cancellation to avoid license suspension.
Why This Is the Correct Answer
Alabama law requires contractors to secure replacement workers' compensation coverage within 10 days of a policy cancellation. Failure to do so within this narrow window exposes the contractor to license suspension, emphasizing the state's priority on protecting workers from uninsured injuries.
Why the Other Options Are Wrong
Option A: 45 days
45 days is too long. Alabama imposes a much tighter 10-day window to ensure workers are not left unprotected for extended periods after a policy lapses.
Option B: 30 days
30 days is a common timeframe in other contexts (notice periods, payment deadlines) but does not apply here. Alabama's workers' comp replacement requirement is stricter at 10 days.
Option D: 15 days
15 days is closer to the correct answer but still exceeds the 10-day requirement. This distractor exploits the tendency to round up when uncertain about short timeframes.
Memory Technique
Think '10 days = 2 work weeks.' Workers cannot go unprotected for more than two business weeks. Ten is also the number of fingers — count on both hands to remember the deadline.
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