CA Class B Contractors: Has State Fund / Broker told you that you must forfeit your CSLB license to drop WC policy fees

I recently transitioned my California Class B Contracting business to consulting with 0 employees and filed an official Workers' Compensation Exemption with the CSLB pursuant to B&P Code § 7125.

Upon canceling my policy with State Compensation Insurance Fund, I was told that because I hold a Class B license, the policy class code fees remain tied to the license, and the only way to eliminate the billing/minimum fees is to forfeit my CSLB license entirely.

Under CSLB law, Class B contractors with no employees are fully exempt and do not need to forfeit their license. I have filed a complaint with the California Department of Insurance (CDI). Has anyone else experienced this exact issue or demand from State Fund or their broker?