Under California law, what happens to a contractor's license when their workers' compensation insurance coverage lapses?
Correct Answer
A) The license is automatically suspended
California Business and Professions Code Section 7125 requires automatic suspension of a contractor's license when workers' compensation insurance coverage lapses. The CSLB must suspend the license immediately upon notification from the insurance carrier or state agencies of policy cancellation or non-renewal.
Why This Is the Correct Answer
California Business and Professions Code Section 7125 requires automatic suspension of a contractor's license when workers' compensation insurance coverage lapses. The CSLB must suspend the license immediately upon notification from the insurance carrier or state agencies of policy cancellation or non-renewal.
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