OREGON CONSTRUCTION CC B TEST EXAMINATION
QUESTIONS WITH VERIFIED A+ ANSWERS 2026
EDITION.
This is a risk pool that is available to those that have been declined by at least one other insurer. Non-
negotiable rates may be higher than rates offered in voluntary markets.
Employers in the Oregon Workers' Compensation Insurance Plan may enter the voluntary market
after maintaining an injury-free work environment, developing a good payment history, and
establishing good job safety records with OR-OSHA.
Workers' Compensation for Leased Employees
The leasing company is required to carry the workers' compensation.
Liabilities for a Non-complying Employer
Keep these points in mind as they can directly impact a contractor who employs without proper
workers' comp coverage.
The penalty for a first offense of employing without providing coverage is two times the amount of
the premium that should have been paid, with a minimum of $1,000. If an employer continues to
employ without coverage, the penalty goes to $250 per day with no limit on the total fine.
WCD will also request a permanent court injunction to force the employer into compliance. An
employer who disobeys an injunction is in contempt of court and is subject to other types of
sanctions, including jail time. In addition, the non-complying employer is responsible for all claim
costs that may arise from injury or disease to its workers.
By law, bankruptcy does not remove obligations for noncompliance. Corporate directors, officers,
limited liability company members, and managers are personally liable for penalties and claim
expenses.
An employee can also file a civil suit against a non-complying employer in addition to obtaining
payment on a workers' compensation claim.
Failure to comply may result in fines, per the following:
First offense for failure to have workers' comp is the greater between $1000 or double the anticipated
premium cost.
A fine of $250 per day may be levied for continued failure to provide workers' comp.
The employer also is responsible for employee costs incurred from an event that should have been
covered; these cost cannot be discharged through bankruptcy.
If an employee files a claim for workers' compensation, the employer has five days to report to the
insurer. The report shall include the following.
The date, time, cause, and nature of the accident and injuries
Whether the accident arose out of, and in the course of, employment
Whether the employer recommends or opposes acceptance of the claim and the reasons why
The name and address of any health insurance provider for the injured employee
Any other details the insurer may require
,Written notice of acceptance or denial of the claim must be furnished to the employee by the insurer
within 60 days after the employer receives notice of the claim.
The insurer may revoke acceptance and issue a denial at any time for fraud, misrepresentation, or
certain other illegal activity by the employee.
As long as you employ six or more persons, you have an obligation to re-employ an employee who is
able to return to work, but unable to perform former duties.
The employee should be employed in the most suitable vacant position available.
Usually, injured employees must be allowed to return to their former positions when they are able to
perform them.
If the former position has been eliminated for legitimate business reasons, the employer does not
have to create a job or resurrect the old job but must offer the employee a suitable vacant job (re-
employment).
A suitable position is one that is substantially similar to the former position in compensation, duties,
skills, location, duration (full part time, temporary, or permanent) and shift.
As of July 1, 2010, construction businesses with a commercial endorsement are required to carry
workers' compensation insurance even if they would otherwise be exempt.
Special Circumstances for Contractors
Ordinarily, exempt contractors are businesses that do not have employees. These businesses do not
need workers' compensation insurance. Non-exempt contractors are businesses that hire or lease
employees. These businesses need workers' compensation insurance. (Leased employees are usually
insured through the worker leasing company that provides their services.)
In some cases, family-owned companies that do not hire employees are exempt contractors even if
multiple family members work for the company. For example:
Partnerships where all the partners are family members are exempt.
Corporations where all the corporate officers are family members are exempt.
Limited liability companies where all the members are family members are exempt.
"Family members" refers to parents, spouses, sisters, brothers, daughters, sons, daughters-in-law,
sons-in-law and grandchildren.
Worker leasing is a way for contractors to administer their workforce. In return for a fee, worker
leasing companies provide workers and handle their payroll, employment taxes and assessments.
They may also offer workers' compensation insurance, retirement options and medical benefits.
Worker leasing companies often provide workers' compensation for both the leased workers and the
contractor's employees. Alternatively, the contractor may provide coverage for both. In either case,
one policy must cover all workers.
Worker leasing companies are licensed by the Department of Consumer and Business Services (DCBS).
Temporary Staffing
In contrast, a temporary service provider provides workers "on a temporary basis." A temporary
service provider is not licensed by DCBS. Temporary workers are for special situations, such as:
Employee absences or leaves
Professional skill shortages
Seasonal workloads
Special assignments or projects
, Temporary staffing requires written documentation that says how long the work will last and
describes the special situation that requires temporary help. Without written documentation, all
workers are presumed to be leased workers.
A contractor using temporary staffing may have its own workers' compensation policy to cover its
regular employees. The temporary staffing provider usually provides workers' compensation for the
temporary workers.
Employees Disqualified from Receiving Benefits
A person is considered disqualified from receiving unemployment benefits if the person was
terminated from a job because of misconduct, or if the person voluntarily left work without good
cause.
A person will be disqualified from receiving benefits if they are discharged or suspended because of
the unlawful use of any controlled substance unless that person is participating in a recognized drug
rehabilitation program.
They may also be disqualified for being discharged two or more times within a 12-month period for
substance abuse. They will be disqualified if it is found that the person committed a felony or theft in
connection with work, admits the act, and is convicted in a court.
The following are employees that are not disqualified.
The person quits work or fails to accept work when a collective bargaining agreement is in effect and
the employer modifies the amount of wages in breach of the agreement.
The person is laid off.
The person is discharged for other than misconduct or use of controlled substances.
The person voluntarily left work before the date of a good-cause voluntary leaving date.
The actual voluntary leaving occurs no more than 15 days before the planned date of voluntary
leaving.
Finding Your Subcontractors
As you know, reputation is paramount in the contracting industry. Just as you must rely on word-of-
mouth to pass about your business, so it is with much of subcontracting. That's why the following are
some of your best sources and methods for locating the best subcontractors to work with:
Check with other contractors like yourself
Consult subcontractors from different fields to see who they say is best to work with in the area
you're looking for
Research through trade associations
Ask suppliers who work with multiple contractors and subcontractors
Seek the opinion of architects, engineers, or other professionals
Be certain that you record and hang on to any information that you gather this way. Keep a central
file or system, so you aren't re-inventing the wheel every time. Take a moment during or immediately
after the period you work with the subcontractor to make notes for future reference. If you detect a
problem with punctuality or substandard materials, and they don't seem inclined to remedy the issue,
you're not likely to want to keep using them. However, if they exhibit high standards, reliability, and
strong pricing, you're going to want to keep them at the top of the list.
Tips for your subcontractor database:
Keep a list of all qualified subcontractors
Always allow sufficient time and notice to give your preferred subcontracting partners time to
QUESTIONS WITH VERIFIED A+ ANSWERS 2026
EDITION.
This is a risk pool that is available to those that have been declined by at least one other insurer. Non-
negotiable rates may be higher than rates offered in voluntary markets.
Employers in the Oregon Workers' Compensation Insurance Plan may enter the voluntary market
after maintaining an injury-free work environment, developing a good payment history, and
establishing good job safety records with OR-OSHA.
Workers' Compensation for Leased Employees
The leasing company is required to carry the workers' compensation.
Liabilities for a Non-complying Employer
Keep these points in mind as they can directly impact a contractor who employs without proper
workers' comp coverage.
The penalty for a first offense of employing without providing coverage is two times the amount of
the premium that should have been paid, with a minimum of $1,000. If an employer continues to
employ without coverage, the penalty goes to $250 per day with no limit on the total fine.
WCD will also request a permanent court injunction to force the employer into compliance. An
employer who disobeys an injunction is in contempt of court and is subject to other types of
sanctions, including jail time. In addition, the non-complying employer is responsible for all claim
costs that may arise from injury or disease to its workers.
By law, bankruptcy does not remove obligations for noncompliance. Corporate directors, officers,
limited liability company members, and managers are personally liable for penalties and claim
expenses.
An employee can also file a civil suit against a non-complying employer in addition to obtaining
payment on a workers' compensation claim.
Failure to comply may result in fines, per the following:
First offense for failure to have workers' comp is the greater between $1000 or double the anticipated
premium cost.
A fine of $250 per day may be levied for continued failure to provide workers' comp.
The employer also is responsible for employee costs incurred from an event that should have been
covered; these cost cannot be discharged through bankruptcy.
If an employee files a claim for workers' compensation, the employer has five days to report to the
insurer. The report shall include the following.
The date, time, cause, and nature of the accident and injuries
Whether the accident arose out of, and in the course of, employment
Whether the employer recommends or opposes acceptance of the claim and the reasons why
The name and address of any health insurance provider for the injured employee
Any other details the insurer may require
,Written notice of acceptance or denial of the claim must be furnished to the employee by the insurer
within 60 days after the employer receives notice of the claim.
The insurer may revoke acceptance and issue a denial at any time for fraud, misrepresentation, or
certain other illegal activity by the employee.
As long as you employ six or more persons, you have an obligation to re-employ an employee who is
able to return to work, but unable to perform former duties.
The employee should be employed in the most suitable vacant position available.
Usually, injured employees must be allowed to return to their former positions when they are able to
perform them.
If the former position has been eliminated for legitimate business reasons, the employer does not
have to create a job or resurrect the old job but must offer the employee a suitable vacant job (re-
employment).
A suitable position is one that is substantially similar to the former position in compensation, duties,
skills, location, duration (full part time, temporary, or permanent) and shift.
As of July 1, 2010, construction businesses with a commercial endorsement are required to carry
workers' compensation insurance even if they would otherwise be exempt.
Special Circumstances for Contractors
Ordinarily, exempt contractors are businesses that do not have employees. These businesses do not
need workers' compensation insurance. Non-exempt contractors are businesses that hire or lease
employees. These businesses need workers' compensation insurance. (Leased employees are usually
insured through the worker leasing company that provides their services.)
In some cases, family-owned companies that do not hire employees are exempt contractors even if
multiple family members work for the company. For example:
Partnerships where all the partners are family members are exempt.
Corporations where all the corporate officers are family members are exempt.
Limited liability companies where all the members are family members are exempt.
"Family members" refers to parents, spouses, sisters, brothers, daughters, sons, daughters-in-law,
sons-in-law and grandchildren.
Worker leasing is a way for contractors to administer their workforce. In return for a fee, worker
leasing companies provide workers and handle their payroll, employment taxes and assessments.
They may also offer workers' compensation insurance, retirement options and medical benefits.
Worker leasing companies often provide workers' compensation for both the leased workers and the
contractor's employees. Alternatively, the contractor may provide coverage for both. In either case,
one policy must cover all workers.
Worker leasing companies are licensed by the Department of Consumer and Business Services (DCBS).
Temporary Staffing
In contrast, a temporary service provider provides workers "on a temporary basis." A temporary
service provider is not licensed by DCBS. Temporary workers are for special situations, such as:
Employee absences or leaves
Professional skill shortages
Seasonal workloads
Special assignments or projects
, Temporary staffing requires written documentation that says how long the work will last and
describes the special situation that requires temporary help. Without written documentation, all
workers are presumed to be leased workers.
A contractor using temporary staffing may have its own workers' compensation policy to cover its
regular employees. The temporary staffing provider usually provides workers' compensation for the
temporary workers.
Employees Disqualified from Receiving Benefits
A person is considered disqualified from receiving unemployment benefits if the person was
terminated from a job because of misconduct, or if the person voluntarily left work without good
cause.
A person will be disqualified from receiving benefits if they are discharged or suspended because of
the unlawful use of any controlled substance unless that person is participating in a recognized drug
rehabilitation program.
They may also be disqualified for being discharged two or more times within a 12-month period for
substance abuse. They will be disqualified if it is found that the person committed a felony or theft in
connection with work, admits the act, and is convicted in a court.
The following are employees that are not disqualified.
The person quits work or fails to accept work when a collective bargaining agreement is in effect and
the employer modifies the amount of wages in breach of the agreement.
The person is laid off.
The person is discharged for other than misconduct or use of controlled substances.
The person voluntarily left work before the date of a good-cause voluntary leaving date.
The actual voluntary leaving occurs no more than 15 days before the planned date of voluntary
leaving.
Finding Your Subcontractors
As you know, reputation is paramount in the contracting industry. Just as you must rely on word-of-
mouth to pass about your business, so it is with much of subcontracting. That's why the following are
some of your best sources and methods for locating the best subcontractors to work with:
Check with other contractors like yourself
Consult subcontractors from different fields to see who they say is best to work with in the area
you're looking for
Research through trade associations
Ask suppliers who work with multiple contractors and subcontractors
Seek the opinion of architects, engineers, or other professionals
Be certain that you record and hang on to any information that you gather this way. Keep a central
file or system, so you aren't re-inventing the wheel every time. Take a moment during or immediately
after the period you work with the subcontractor to make notes for future reference. If you detect a
problem with punctuality or substandard materials, and they don't seem inclined to remedy the issue,
you're not likely to want to keep using them. However, if they exhibit high standards, reliability, and
strong pricing, you're going to want to keep them at the top of the list.
Tips for your subcontractor database:
Keep a list of all qualified subcontractors
Always allow sufficient time and notice to give your preferred subcontracting partners time to
