EmploymentQuestion 1010 of 1605

A contractor cannot find a private insurer willing to write a workers' compensation policy. What is the 'insurer of last resort' available in California?

a.A mandatory self-insurance escrow account
b.The federal Department of Labor
c.The State Compensation Insurance Fund (State Fund)
d.The Contractors State License Board's insurance pool

Explanation

The State Compensation Insurance Fund (State Fund) is a state-created insurer that competes with private carriers and serves as the insurer of last resort. A contractor unable to obtain coverage on the private market can obtain a workers' compensation policy through State Fund.

Law Reference: Insurance Code §11780; State Fund

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Reviewed by Abraham Chen Licensed California General Contractor (CSLB License #1101856 verify)
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