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A Class C-10 electrical contractor has a bond claim filed against them for $8,000. The contractor's license bond amount is $25,000. If the claim is valid and paid, what happens to the contractor's license status?

Correct Answer

D) License is automatically suspended until bond is restored

Under B&P Code Section 7071.8, when a bond claim is paid, the license is automatically suspended until the full bond amount is restored.

Answer Options
A
License remains active with no additional requirements
B
Contractor has 90 days to restore the bond or license becomes invalid
C
License is revoked permanently
D
License is automatically suspended until bond is restored

Why This Is the Correct Answer

Under B&P Code Section 7071.8, when a bond claim is paid, the license is automatically suspended until the full bond amount is restored.

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