Business & LicensingQuestion 1442 of 1605
Which statement about the contractor's license bond is correct?
a.It protects consumers and certain others from damages caused by license law violations
b.It guarantees the contractor's profits
c.It replaces workers' compensation insurance
d.It is optional for active licensees
Explanation
Under B&P Code section 7071.6, the $25,000 bond protects consumers and certain other parties from damages resulting from the contractor's violation of the license law. It is mandatory for active status and is not profit insurance or workers' comp.
Law Reference: B&P Code §7071.6Practice all 1605 questions free — no signup required.
Related questions on this topic
- A home improvement contract must include the approximate start and completion dates. Failure to include required contract terms can result in what?
- Which practice by a home improvement contractor is expressly prohibited?
- During a declared state of emergency, contracting without a license for repair work may be charged as what?
- A licensee with employees must maintain what type of insurance to keep the license valid?
- What happens to a license if a contractor with employees fails to maintain workers' compensation coverage?
- An applicant who has been convicted of a crime substantially related to the qualifications of a contractor may face what in the licensing process?
Last reviewed: · editorial process
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)