Business & LicensingQuestion 405 of 690
The bond of qualifying individual is required primarily in which situation?
a.Whenever any contractor renews a license
b.When the qualifier is an RME, or an RMO owning less than 10 percent of the company
c.When a contractor hires its first employee
d.Only when a contractor performs public works
Explanation
Under §7071.9, a bond of qualifying individual is required when the license is qualified by an RME or by an RMO who owns less than 10 percent of the voting stock. It supplements the standard contractor license bond.
Law Reference: Bus. & Prof. Code §7071.9Practice all 690 questions free — no signup required.
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