Business & LicensingQuestion 1430 of 1605
The contractor's license bond and the bond of qualifying individual are two separate bonds. When is the bond of qualifying individual required?
a.For every license, always
b.Only for sole proprietors
c.When the qualifying RMO/RME does not own at least 10% of the entity's voting equity
d.Only for engineering work
Explanation
Under B&P Code section 7071.9, the $25,000 bond of qualifying individual is required when the RMO/RME qualifying the entity owns less than 10 percent of the voting stock or membership interest, ensuring accountability of non-owner qualifiers.
Law Reference: B&P Code §7071.9Practice all 1605 questions free — no signup required.
Related questions on this topic
- An applicant fails the trade or law portion of the licensing examination. What is the general consequence?
- An original contractor's license application generally becomes void if the applicant fails to complete requirements within what period after the application is accepted?
- A contractor licensed only as Class A General Engineering is asked to remodel the interior of an existing office (a general building project). What is the proper course?
- An RMO who owns 15% of the licensed corporation qualifies its license. Is a bond of qualifying individual required?
- A licensee changes the business name style (for example, from 'ABC Builders' to 'ABC Construction Inc.'). What is generally required?
- A sole proprietor licensee incorporates the business. Can the new corporation keep operating under the sole proprietor's license number without action?
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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)