Under B&P Code Section 7071.17, what happens to a contractor's bond when a valid claim is paid?
Correct Answer
A) Bond coverage is reduced by the claim amount
When a bond claim is paid, the bond coverage is reduced by that amount, and the contractor must restore the bond to the required minimum amount.
Why This Is the Correct Answer
When a bond claim is paid, the bond coverage is reduced by that amount, and the contractor must restore the bond to the required minimum amount.
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