Business FinancesQuestion 628 of 690
In addition to the $25,000 Contractor License Bond, a contractor whose license has been suspended for failing to pay a final, unsatisfied construction-related judgment must post which additional security to be reinstated?
a.A Bond of Qualifying Individual (or a Disciplinary Bond) in the amount required by the Registrar to satisfy or secure the judgment
b.An additional $25,000 license bond, making the total bond $50,000
c.A $5,000 cash deposit with the State Treasurer
d.A surety release letter from the prior bonding company
Explanation
Bus. & Prof. Code §7071.6 et seq. (specifically §7071.17) requires a licensee with an unsatisfied final construction-related judgment to post a disciplinary or judgment bond in an amount set by the Registrar, in addition to the standard $25,000 license bond, before the license can be reinstated. A second license bond does not address the specific judgment. The $5,000 deposit does not exist as a CSLB option. A 'surety release letter' is not a security mechanism. The Bond of Qualifying Individual is a separate $25,000 bond required when a non-owner RMO/RME qualifies the license under §7071.9.
Law Reference: Bus. & Prof. Code §7071.6Practice all 690 questions free — no signup required.
Related questions on this topic
- What is the FUTA rate after the standard state credit, and how does it compare to California's State Unemployment Insurance (SUI) for new employers?
- A self-employed contractor pays federal estimated income taxes quarterly. For income earned during a normal calendar year, which set of due dates is correct?
- A general contractor pays an unincorporated subcontractor $1,200 over the calendar year for services. For federal and California tax reporting, the contractor must issue which form to the subcontractor?
- The primary purpose of a bid bond on a California public works project is to:
- Under California home improvement contract law, the down payment a contractor may collect from an owner before any work is done or materials are delivered is limited to:
- On a residential swimming pool contract, what is the maximum down payment a contractor may receive before work begins?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California CSLB Contractor License Law & Business Exam · How we review