Contractor License Practice Exam

What must a contractor do when a salesperson is no longer associated with their company?

1. Notify the licensing board

2. Give the salesperson verbal notice

3. Give written notice to the commission

4. Give the commission written notice

The correct answer is: Give the commission written notice

When a salesperson is no longer associated with a contractor's company, the contractor is required to provide written notice to the commission. This is an essential step because it ensures that the commission is kept up to date regarding the affiliations of licensed individuals with contractors. By notifying the commission in writing, the contractor is fulfilling a legal responsibility that helps maintain accurate records within the licensing authority. This process protects both the contractor's business and the integrity of the licensing system, ensuring that only active and associated salespersons are recognized under the contractor's license. Failing to provide this written notification could lead to administrative issues, potential penalties, or complications in the contractor's licensing status, as the licensing commission relies on this information to enforce regulations accurately.