A qualifying individual for a contractor license corporation must file a bond in what amount according to California law?
Correct Answer
B) $12,500
Under Business and Professions Code Section 7071.9, a qualifying individual must file a bond of $12,500. This is separate from the contractor license bond and ensures the qualifying individual's compliance with licensing laws. This requirement applies when the qualifying individual is not an owner of the contracting business.
Why This Is the Correct Answer
Business and Professions Code Section 7071.9 requires a qualifying individual who is NOT an owner of the contracting business to file a separate bond of $12,500. This bond ensures the qualifying individual personally stands behind their compliance with the Contractors' State License Law.
Why the Other Options Are Wrong
Option A: $15,000
$15,000 is not a statutory bond amount under the CSLB licensing scheme. It may be confused with other surety amounts in different states or industries.
Option C: $25,000
$25,000 is the contractor license bond amount required under BPC Section 7071.6 for the license itself — not the qualifying individual bond. These are two separate bond requirements.
Option D: $10,000
$10,000 is below the statutory minimum and does not correspond to any required California contractor bond amount.
Memory Technique
Two bonds, two amounts: The LICENSE bond = $25,000 (the business). The QUALIFYING INDIVIDUAL bond = $12,500 (the person) — exactly half. 'The person bond is half the business bond.'
More law-business Questions
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