Insurance & LiensQuestion 467 of 1605
A contractor's workers' compensation policy is cancelled and the contractor has not filed an exemption certificate. What is the consequence for the CSLB license?
a.Nothing changes as long as no claims are filed
b.The license converts to an inactive engineering license
c.The contractor receives an automatic 90-day grace period with full rights
d.The license is automatically suspended
Explanation
Under Bus. & Prof. Code §7125, a contractor with employees must keep a valid workers' compensation certificate on file with the CSLB. If coverage lapses and no exemption is on file, the license is automatically suspended.
Law Reference: Bus. & Prof. Code §7125Practice all 1605 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)