Business & LicensingQuestion 1452 of 1605
If a claimant wins a judgment against the contractor's license bond and the surety pays, what may the surety do?
a.Nothing
b.Cancel the consumer's rights
c.Increase the bond to $1 million
d.Seek reimbursement (indemnity) from the contractor
Explanation
Under general surety principles and B&P Code section 7071.6, when the surety pays a valid bond claim, it is entitled to seek indemnity from the contractor (the principal). The bond protects the public, not the contractor.
Law Reference: B&P Code §7071.6Practice all 1605 questions free — no signup required.
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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)