CSLB Law & Business
Simplified Exam Questions with 100% Correct Answers
Bonds can be purchased from bonding companies for ___% of the original contract price. -
1-2%
This acts as an assurance that the contractor will be able to complete the job as described in the
contract. - Bid Bond
This guarantees a contractor will complete the project according to the agreed upon terms &
conditions. - Performance Bond or Contract Bond
This guarantees that subcontractors and suppliers will be paid by the contractor for properly
performed work. - Payment Bond
Payment Bonds are required for federal government contracts over $__________. - $35,000
This covers the business owner in case of employee dishonesty or theft. - Fidelity Bond
Contractors must file a contractors bond OR submit a cash deposit with the CSLB for $_______.
- $15,000
The value of a contractors bond must be $________ - $15,000
The contractors bond must be filed with the CLSB within ___ days from the bond effective date.
- 90
True or False: A contractor must identify their type of insurance when referring to themselves as
"bonded" or "insured" in advertisements or publications. - True
,A business must submit a separate $________ bond for RMEs or RMOs. - $12,500 (They
can be exempt if the RMO can certify ownership of 10% or more of the voting stock in the
company.)
A Limited Liability Surety Bond for $__________ is required in addition to the contractors bond
for an LLC license. - $100,000
This must be filed with the Registrar after a license has been revoked or denied. -
Disciplinary Bond
True or False: A Disciplinary Bond can be combined with any other bond. - False. It's an
additional requirement and may not be filed in place of another bond.
The Disciplinary bond amount ranges from _______ to _______, depending on the violation. -
$15,000 up to 10x the amount of the contractor's bond
The Disciplinary Bond must be valid & on file with the Registrar for how long? - 2 years
How soon should the Disciplinary bond be filed with the CSLB? - Within 90 days
All of these are approved alternatives to surety bonds except:
A) Certificate of deposit
B) Cash
C) Stocks/fluctuating investments
D) Savings & loan investments
E) U.S. government bearer bond - C) Stocks or fluctuating investments
, A license may be suspended if:
A) One or more of the required bonds are canceled by their surety company
B) The bond amount is reduced by a judgment or payment claim
C) There's failure to maintain either the Disciplinary bond or cash deposit for the required time
period
D) All of the above - D) All of the above
What must a contractor submit before a contractor's license is issued? - Proof of worker's
compensation insurance
How soon must an employee provide written notification of an injury to their employer? -
Within 30 days
An employer is fined $_________ per uninsured employee if they don't provide workers comp. -
$2000
(Increases to $10,000 if a jobsite injury occurs, maxing out at $100,000.)
A mechanics lien must be filed with the... - County Recorder
The mechanics lien must include all of the following details EXCEPT:
A) Date the funds were due
Simplified Exam Questions with 100% Correct Answers
Bonds can be purchased from bonding companies for ___% of the original contract price. -
1-2%
This acts as an assurance that the contractor will be able to complete the job as described in the
contract. - Bid Bond
This guarantees a contractor will complete the project according to the agreed upon terms &
conditions. - Performance Bond or Contract Bond
This guarantees that subcontractors and suppliers will be paid by the contractor for properly
performed work. - Payment Bond
Payment Bonds are required for federal government contracts over $__________. - $35,000
This covers the business owner in case of employee dishonesty or theft. - Fidelity Bond
Contractors must file a contractors bond OR submit a cash deposit with the CSLB for $_______.
- $15,000
The value of a contractors bond must be $________ - $15,000
The contractors bond must be filed with the CLSB within ___ days from the bond effective date.
- 90
True or False: A contractor must identify their type of insurance when referring to themselves as
"bonded" or "insured" in advertisements or publications. - True
,A business must submit a separate $________ bond for RMEs or RMOs. - $12,500 (They
can be exempt if the RMO can certify ownership of 10% or more of the voting stock in the
company.)
A Limited Liability Surety Bond for $__________ is required in addition to the contractors bond
for an LLC license. - $100,000
This must be filed with the Registrar after a license has been revoked or denied. -
Disciplinary Bond
True or False: A Disciplinary Bond can be combined with any other bond. - False. It's an
additional requirement and may not be filed in place of another bond.
The Disciplinary bond amount ranges from _______ to _______, depending on the violation. -
$15,000 up to 10x the amount of the contractor's bond
The Disciplinary Bond must be valid & on file with the Registrar for how long? - 2 years
How soon should the Disciplinary bond be filed with the CSLB? - Within 90 days
All of these are approved alternatives to surety bonds except:
A) Certificate of deposit
B) Cash
C) Stocks/fluctuating investments
D) Savings & loan investments
E) U.S. government bearer bond - C) Stocks or fluctuating investments
, A license may be suspended if:
A) One or more of the required bonds are canceled by their surety company
B) The bond amount is reduced by a judgment or payment claim
C) There's failure to maintain either the Disciplinary bond or cash deposit for the required time
period
D) All of the above - D) All of the above
What must a contractor submit before a contractor's license is issued? - Proof of worker's
compensation insurance
How soon must an employee provide written notification of an injury to their employer? -
Within 30 days
An employer is fined $_________ per uninsured employee if they don't provide workers comp. -
$2000
(Increases to $10,000 if a jobsite injury occurs, maxing out at $100,000.)
A mechanics lien must be filed with the... - County Recorder
The mechanics lien must include all of the following details EXCEPT:
A) Date the funds were due
