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California Business and Professions Code Section 7125

Legal Research Home > California Laws > Business and Professions Code > California Business and Professions Code Section 7125

7125.  (a) Except as provided in subdivision (b), the board shall
require as a condition precedent to the issuance, reinstatement,
reactivation, renewal, or continued maintenance of a license, that
the applicant or licensee have on file at all times a current and
valid Certificate of Workers' Compensation Insurance or Certification
of Self-Insurance in the applicant's or licensee's business name. A
Certificate of Workers' Compensation Insurance shall be issued and
filed, electronically or otherwise, by an insurer duly licensed to
write workers' compensation insurance in this state. A Certification
of Self-Insurance shall be issued and filed by the Director of
Industrial Relations. If reciprocity conditions exist, as provided in
Section 3600.5 of the Labor Code, the registrar shall require the
information deemed necessary to ensure compliance with this section.
   (b) This section does not apply to an applicant or licensee who
meets both of the following conditions:
   (1) Has no employees provided that he or she files a statement
with the board on a form prescribed by the registrar prior to the
issuance, reinstatement, reactivation, or continued maintenance of a
license, certifying that he or she does not employ any person in any
manner so as to become subject to the workers' compensation laws of
California or is not otherwise required to provide for workers'
compensation insurance coverage under California law.
   (2) Does not hold a C-39 license, as defined in Section 832.39 of
Title 16 of the California Code of Regulations.
   (c) No Certificate of Workers' Compensation Insurance,
Certification of Self-Insurance, or exemption certificate is required
of a holder of a license that has been inactivated on the official
records of the board during the period the license is inactive.
   (d) (1) The insurer, including the State Compensation Insurance
Fund, shall report to the registrar the following information for any
policy required under this section: name, license number, policy
number, dates that coverage is scheduled to commence and lapse, and
cancellation date if applicable.
   (2) A workers' compensation insurer shall also report to the
registrar a licensee whose workers' compensation insurance policy is
canceled by the insurer if all of the following conditions are met:
   (A) The insurer has completed a premium audit or investigation.
   (B) A material misrepresentation has been made by the insured that
results in financial harm to the insurer.
   (C) No reimbursement has been paid by the insured to the insurer.
   (3) Willful or deliberate disregard and violation of workers'
compensation insurance laws constitutes a cause for disciplinary
action by the registrar against the licensee.
   (e) (1) For any license that, on January 1, 2013, is active and
includes a C-39 classification in addition to any other
classification, the registrar shall, in lieu of the automatic license
suspension otherwise required under this article, remove the C-39
classification from the license unless a valid Certificate of Workers'
Compensation Insurance or Certification of Self-Insurance is
received by the registrar.
   (2) For any licensee whose license, after January 1, 2013, is
active and has had the C-39 classification removed as provided in
paragraph (1), and who is found by the registrar to have employees
and to lack a valid Certificate of Workers' Compensation Insurance or
Certification of Self-Insurance, that license shall be automatically
suspended as required under this article.
   (f) The information reported pursuant to paragraph (2) of
subdivision (d) shall be confidential, and shall be exempt from
disclosure under the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code).

Last modified: February 22, 2013