Business & LicensingQuestion 440 of 1632
A licensed contractor allows the $25,000 contractor license bond to lapse because the bond premium was not paid. The effect on the license is that:
a.Nothing changes; the bond is optional after the first renewal
b.The license may be suspended until a valid bond is again in effect
c.The license is upgraded to inactive status with full work rights
d.The contractor simply pays a $100 fee with no other effect
Explanation
Maintaining the §7071.6 contractor license bond is a condition of an active license. If the bond lapses, the CSLB may suspend the license, and the contractor cannot lawfully contract until a valid bond is reinstated.
Law Reference: Bus. & Prof. Code §7071.6This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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PrepPass team · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)