A contractor's workers compensation policy is cancelled mid-term. Under SC law, how many days does the contractor have to obtain replacement coverage before license suspension?
Correct Answer
C) 10 days
South Carolina contractors must obtain replacement workers compensation coverage within 10 days of policy cancellation to avoid license suspension.
Why This Is the Correct Answer
Option C (10 days) is correct. South Carolina law imposes a strict 10-day window for contractors to obtain replacement workers compensation coverage after a policy cancellation. Failure to secure replacement coverage within this tight deadline results in automatic license suspension.
Why the Other Options Are Wrong
Option A: 30 days
Option A (30 days) is incorrect. A 30-day cure period is common in many business regulatory contexts and might seem reasonable, but SC's workers comp replacement requirement is far more urgent — only 10 days. This is a common distractor because 30 days appears in many other SC contractor regulations.
Option B: 45 days
Option B (45 days) is incorrect. Forty-five days does not match any South Carolina workers compensation or contractor licensing deadline. This is a distractor designed to appeal to candidates guessing at a middle-ground value.
Option D: 15 days
Option D (15 days) is incorrect. Fifteen days might seem close to the correct answer, but SC law specifically requires replacement coverage within 10 days, not 15. The tight deadline reflects the state's priority in ensuring worker protection is never lapsed for more than a very short period.
Memory Technique
10 days = 2 work weeks. Think: 'If my WC policy is cancelled Monday, I have until Friday of the following week to get new coverage or lose my license.' The urgency — 10 days — mirrors how quickly an uninsured work injury could become a financial catastrophe.
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A contractor receives a stop work order from the building official. Work continues for 3 additional days before stopping. What penalty applies per South Carolina building codes?
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A contractor has 15 employees and annual payroll of $780,000. The workers compensation rate is $4.25 per $100 of payroll. What is the annual premium?