What happens to a contractor who fails to notify the Division of Professional and Occupational Licensing about a disassociation?

When a contractor fails to notify the Division of Professional and Occupational Licensing about a disassociation, the most likely consequence is that their license will be suspended. This is because maintaining accurate and up-to-date information regarding the status of all individuals associated with a contractor's license is crucial for regulatory compliance. The failure to report a disassociation can create a situation where the licensing body cannot ensure that all parties associated with the license meet the necessary qualifications or standards, which jeopardizes public trust and safety.

Suspension serves as a regulatory measure to protect the integrity of the licensing system and ensures that only qualified individuals are recognized as active license holders. This action allows time for the contractor to rectify the situation by providing the needed notification and helps maintain compliance with licensing regulations.

In contrast, upgrading the license or leaving it active would not address the potential risks associated with the unreported disassociation. Termination, while a possible severe outcome in other contexts, is not typically the immediate result of failure to notify unless there are broader violations involved. Hence, suspension is the appropriate and standard action taken in such situations.