CSLB CONTRACTORS LAW AND BUSINESS
2026 CONTRACTOR LICENSING RULES
ASSESSMENT PAPER ANSWERS VERIFIED
SUMMARY SHEET
◉ Under California Law, how long does a homeowner have to cancel
a home improvement contract if they are over 65 years old?
Answer: 5 days
◉ What is required in a home improvement contract to protect the
consumer?
Answer: •payment schedule
•start and completion dates
•contractors license information
◉ How often must a contractor renew their license in California?
Answer: Every 2 years
◉ What type of insurance is mandatory for all limited liability
companies (LLC) in California?
Answer: Commercial general liability insurance
, ◉ What does the term "percentage of completion method" refer to
in accounting for contractors?
Answer: A way to report profit and losses based on actual work
completed
◉ What is the fine for an unlicensed contractor acting as a
contractor in California?
Answer: up to $15,000
◉ What must a contractor disclose to a homeowner if they do not
carry commercial general liability insurance?
Answer: They MUST notified homeowner in WRITING
◉ What is the primary role of the CSLB registrar of contractors?
Answer: Enforcing contractor licensing laws and disciplinary action
◉ How many classifications of contractor licenses does CSLB
regulate?
Answer: 45
◉ In California, which contractor is required to carry $100,000
surety bond in addition to $25,00 contractor bond?
2026 CONTRACTOR LICENSING RULES
ASSESSMENT PAPER ANSWERS VERIFIED
SUMMARY SHEET
◉ Under California Law, how long does a homeowner have to cancel
a home improvement contract if they are over 65 years old?
Answer: 5 days
◉ What is required in a home improvement contract to protect the
consumer?
Answer: •payment schedule
•start and completion dates
•contractors license information
◉ How often must a contractor renew their license in California?
Answer: Every 2 years
◉ What type of insurance is mandatory for all limited liability
companies (LLC) in California?
Answer: Commercial general liability insurance
, ◉ What does the term "percentage of completion method" refer to
in accounting for contractors?
Answer: A way to report profit and losses based on actual work
completed
◉ What is the fine for an unlicensed contractor acting as a
contractor in California?
Answer: up to $15,000
◉ What must a contractor disclose to a homeowner if they do not
carry commercial general liability insurance?
Answer: They MUST notified homeowner in WRITING
◉ What is the primary role of the CSLB registrar of contractors?
Answer: Enforcing contractor licensing laws and disciplinary action
◉ How many classifications of contractor licenses does CSLB
regulate?
Answer: 45
◉ In California, which contractor is required to carry $100,000
surety bond in addition to $25,00 contractor bond?
