Business & LicensingQuestion 1362 of 1632
When the CSLB requires a bond of qualifying individual because an RMO or RME owns less than 10% of the entity, what is the required amount?
a.$25,000
b.$12,500
c.$15,000
d.$7,500
Explanation
Under B&P Code section 7071.9, the bond of qualifying individual is $25,000. It is required when a responsible managing officer or employee does not own at least 10 percent of the voting stock or equity of the licensed entity.
Law Reference: B&P Code §7071.9This 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)