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Law & BusinessLicensingmedium11% of exam part

A contractor's bond cancellation notice will suspend the license if not resolved. What should the office do?

Correct Answer

B) Resolve the bond filing before contracting interruptions occur.

Bond filing must be maintained for license good standing; cancellation should be resolved promptly to avoid suspension or interruption.

Answer Options
A
Keep selling work and fix the bond after final payment.
B
Resolve the bond filing before contracting interruptions occur.
C
Use the customer's homeowner policy as the contractor bond.
D
Delete the bond line from the license file.

Why This Is the Correct Answer

Bond filing must be maintained for license good standing; cancellation should be resolved promptly to avoid suspension or interruption.

Why the Other Options Are Wrong

Option A: Keep selling work and fix the bond after final payment.

Keep selling work and fix the bond after final payment. belongs to a different file or record trail; it does not prove the contractor bond event.

Option C: Use the customer's homeowner policy as the contractor bond.

Use the customer's homeowner policy as the contractor bond. belongs to a different file or record trail; it does not prove the contractor bond event.

Option D: Delete the bond line from the license file.

Delete the bond line from the license file. belongs to a different file or record trail; it does not prove the contractor bond event.

Memory Technique

File Managing License where the next reviewer would look first.

Reference Hint

Study anchor (closed-book): memorize Contractor bond from CSLB bond and license maintenance guidance; California Business and. / CSLB contractor bond maintenance guidance; know the rule or calculation trigger without relying on exam-room lookup.

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