Who may potentially benefit from a statutory contractor license bond?

California C-20 exam practice question · Insurance & Liens

Who may potentially benefit from a statutory contractor license bond?

AOnly equipment manufacturers
BEvery claimant for every business loss
Statutorily defined persons and losses
DOnly the contractor’s shareholders

Why C is correct

The license bond is a statutory consumer and compliance protection with defined claimants, conduct, limits, and aggregate exposure. It is not unlimited business insurance.

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Who may potentially benefit from a statutory contractor license bond?

Who may potentially benefit from a statutory contractor license bond?

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