A qualifying individual for a contractor's license who is replaced or removed must have their bond of what amount filed with the CSLB according to Business and Professions Code Section 7071.8?
Correct Answer
A) $12,500
Business and Professions Code Section 7071.8 requires a bond of $12,500 for the qualifying individual. This bond remains in effect for four years after the qualifying individual is no longer associated with the license, protecting against claims arising from work performed while they were the qualifier. This is separate from and in addition to the contractor license bond.
Why This Is the Correct Answer
B&P Code Section 7071.8 requires a $12,500 bond for the qualifying individual (QI). This bond must be filed with the CSLB when the QI is designated and continues to protect consumers for four years after the QI is no longer associated with the license. It is separate from the $15,000 contractor license bond and exists to cover claims arising from work supervised by that specific qualifying individual.
Why the Other Options Are Wrong
Option B: $10,000
$10,000 is not the statutory amount for the qualifying individual bond under Section 7071.8. This figure does not correspond to any current bond threshold in California contractor law. It may be a distractor designed to test whether examinees know the precise statutory amount.
Option C: $15,000
$15,000 is the amount of the contractor license bond (B&P Code Section 7071.5), not the qualifying individual bond. These are two distinct bonds with different purposes and different amounts.
Option D: $25,000
$25,000 is the disciplinary bond amount required when a new qualifying individual has prior CSLB disciplinary action within five years (Section 7071.11), or the cash deposit alternative to the license bond. It is not the standard QI bond amount under Section 7071.8.
Memory Technique
Remember the bond hierarchy: $12,500 for the QI (the person), $15,000 for the license (the company). The person's bond is smaller; the company bond is bigger. '12 for the individual, 15 for the license.'
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