Business & LicensingQuestion 1413 of 1605
What generally happens to a license if the required bond lapses or is canceled?
a.Nothing changes
b.The license is suspended until an acceptable bond is filed
c.The bond amount is refunded
d.The license converts to Class A
Explanation
Under the license law, an active license must be continuously bonded. If the $25,000 bond lapses or is canceled and not replaced, the Registrar suspends the license until a valid bond is on file.
Law Reference: B&P Code §7071.6Practice all 1605 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)