Which statement about the $25,000 contractor's license bond is correct?
Explanation
B&P §7071.5 names the beneficiaries of the §7071.6 bond: a homeowner damaged by a violation on home improvement work, the owner of a single-family dwelling not built for sale, any person damaged by a willful and deliberate violation, and employees for unpaid wages and fringe benefits — the last capped in the aggregate at $4,000 by §7071.11(a). (b) describes a performance bond, a separate instrument bought project by project. (c) is the workers' compensation confusion: §7125 requires that coverage separately, and no surety bond pays an injured worker's medical and indemnity benefits. (d) reverses the instrument, since the surety pays the claimant and then seeks indemnity from the contractor.
Law Reference: B&P Code §7071.5 / §7071.6 / §7071.11(a)This 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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