A contractor's license bond is called upon for a valid claim of $8,000. The bond amount was $15,000. After paying this claim, what action must the contractor take?
Correct Answer
D) Restore the bond to its full penal sum immediately
When a bond is impaired by a claim payment, it must be restored to its full penal sum immediately to maintain the license in good standing.
Why This Is the Correct Answer
When a bond is impaired by a claim payment, it must be restored to its full penal sum immediately to maintain the license in good standing.
More ca-license-law Questions
A Class C-10 electrical contractor has annual gross receipts of $3.2 million. What is the required bond amount under current California law?
Under B&P Code Section 7125.4, what is the fee for initial Home Improvement Salesperson registration?
According to B&P Code Section 7125, what is the maximum penalty the CSLB can impose for contracting without a license?
A home improvement contract for $8,500 requires a 3-day right to cancel notice. The contract is signed on Tuesday at 2 PM. When does the cancellation period expire?
A contractor employs 15 workers across multiple job sites. The total annual payroll is $850,000 with a workers' comp rate of 4.1%. If they self-insure with a deposit requirement of 125% of estimated annual premium, what deposit is required?
A C-10 electrical contractor wants to perform plumbing work valued at $8,000 as part of a larger electrical project. Is this permissible under CSLB regulations?
A homeowner discovers that an unlicensed contractor performed $25,000 worth of work on their property. Under B&P Code Section 7031, what remedy is available to the homeowner?
A Class B general building contractor wants to perform electrical work valued at $750. According to the B&P Code, this contractor:
A contractor's qualifying individual leaves the company. How many days does the contractor have to replace them before the license becomes invalid?
According to B&P Code Section 7031, what happens to a contractor's right to payment if they perform work while unlicensed?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
According to the B&P Code, a contractor's license becomes invalid if the qualifying individual is disassociated for more than:
Next Question
A contractor's workers' compensation insurance is cancelled mid-policy. According to the Business and Professions Code, how long does the contractor have to obtain replacement coverage before their license is suspended?