Business & LicensingQuestion 440 of 690
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 §7071.6Practice all 690 questions free — no signup required.
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