Oregon Construction Contractors (CCB) Practice Test

If an exempt contractor is licensed as a commercial contractor, what must they maintain?

1. No insurance is required

2. A personal election workers' compensation coverage

3. General liability insurance only

4. Property damage insurance only

The correct answer is: A personal election workers' compensation coverage

An exempt contractor who is licensed as a commercial contractor is required to maintain a personal election workers' compensation coverage. This is essential because even though they may be exempt from certain requirements that apply to non-exempt contractors, if they are engaged in a commercial construction project, ensuring they have workers' compensation coverage is crucial for protecting themselves and any employees from workplace injuries. This coverage serves to provide financial protection in the event of work-related accidents, ensuring that medical expenses and lost wages are covered. In the case of commercial contracting, the legal framework emphasizes the importance of having workers' compensation insurance, especially as it relates to the safety and security of the workforce involved in various construction activities. The other choices, while they address aspects of insurance, do not meet the specific requirements based on the stipulations governing commercial contractors and exempt status regarding workers' compensation coverage. Therefore, maintaining personal election workers' compensation coverage is the right answer in this context.