Business & LicensingQuestion 1434 of 1605
Claims against the $25,000 contractor's license bond are generally handled how when total claims exceed the bond amount?
a.Largest claim first
b.Newest claim first
c.The contractor chooses
d.Certain priority claimants (like residential property owners) may have priority, with claims otherwise sharing the limited bond proceeds
Explanation
Under B&P Code section 7071.11, the bond's proceeds are limited to $25,000 total. The statute establishes priorities (for example, residential homeowners) and provides for proration among claimants when total claims exceed the bond amount.
Law Reference: B&P Code §7071.11Practice 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)