CSLB LAW AND BUSINESS 2026 EXAMINERS SET
QUESTIONS AND ANSWERS SURE A+
✔✔How does a contractor renew a workers' compensation exemption? - ✔✔By
submitting an updated exemption certificate to CSLB
✔✔What type of bond protects the public and is required of all license contractors? -
✔✔Contract license bond
✔✔What must be included in the payment schedule of a home improvement contract? -
✔✔Details linking payments to project progress
✔✔What is the maximum fine for unlicensed contractor activity in California? -
✔✔$15,000
✔✔Who is responsible for ensuring construction meets safety standards? - ✔✔The
contractor
✔✔What must contractors provide homeowners before work begins on a home
improvement project? - ✔✔A signed and dated copy of the contract
, ✔✔How long does a home improvement contract remain enforceable after a
homeowner signs it? - ✔✔Until the contract terms are fulfilled
✔✔What should be included in a mechanics lien warning to a homeowner? -
✔✔Potential liability for unpaid subcontractor claims
✔✔What is the primary purpose of a commercial general liability (CGL) insurance
policy? - ✔✔To cover third-party claims of bodily injury or property damage
✔✔How does CSLB verify that a contractor's workers' compensation insurance is valid?
- ✔✔Using online submissions from the contractor's insurance provider
✔✔What is the primary purpose of a balance sheet? - ✔✔To provide a snapshot of
assets, liabilities, and equity
✔✔What must be included in a home improvement contract regarding delays? -
✔✔Permissible delays and reasons for them
✔✔How often must contractors submit financial disclosures to CSLB? - ✔✔As
requested by CSLB for investigations or audits
✔✔What type of injury must be reported immediately to CAL/OSHA? - ✔✔Serious
injuries, illnesses or deaths
✔✔What does "surety bond" refer to in construction? - ✔✔A guarantee from a third-
party to fulfill obligations if the contractors fail
✔✔What must a contractor file when their workers' compensation insurance policy is
canceled? - ✔✔Proof of a new policy or exemption certificate
✔✔What is the consequence of violating the California Contractors License Law? -
✔✔License suspension, revocation or fines
✔✔How long are accusations that result in contractor license revocation disclosed to
the public? - ✔✔Indefinitely
✔✔What is the penalty for failing to post a notice to employees regarding workers'
compensation? - ✔✔Misdemeanor charges
✔✔What is the primary benefit of using the accrual accounting method for contractors?
- ✔✔Matching revenues and expenses to the time period they occur
QUESTIONS AND ANSWERS SURE A+
✔✔How does a contractor renew a workers' compensation exemption? - ✔✔By
submitting an updated exemption certificate to CSLB
✔✔What type of bond protects the public and is required of all license contractors? -
✔✔Contract license bond
✔✔What must be included in the payment schedule of a home improvement contract? -
✔✔Details linking payments to project progress
✔✔What is the maximum fine for unlicensed contractor activity in California? -
✔✔$15,000
✔✔Who is responsible for ensuring construction meets safety standards? - ✔✔The
contractor
✔✔What must contractors provide homeowners before work begins on a home
improvement project? - ✔✔A signed and dated copy of the contract
, ✔✔How long does a home improvement contract remain enforceable after a
homeowner signs it? - ✔✔Until the contract terms are fulfilled
✔✔What should be included in a mechanics lien warning to a homeowner? -
✔✔Potential liability for unpaid subcontractor claims
✔✔What is the primary purpose of a commercial general liability (CGL) insurance
policy? - ✔✔To cover third-party claims of bodily injury or property damage
✔✔How does CSLB verify that a contractor's workers' compensation insurance is valid?
- ✔✔Using online submissions from the contractor's insurance provider
✔✔What is the primary purpose of a balance sheet? - ✔✔To provide a snapshot of
assets, liabilities, and equity
✔✔What must be included in a home improvement contract regarding delays? -
✔✔Permissible delays and reasons for them
✔✔How often must contractors submit financial disclosures to CSLB? - ✔✔As
requested by CSLB for investigations or audits
✔✔What type of injury must be reported immediately to CAL/OSHA? - ✔✔Serious
injuries, illnesses or deaths
✔✔What does "surety bond" refer to in construction? - ✔✔A guarantee from a third-
party to fulfill obligations if the contractors fail
✔✔What must a contractor file when their workers' compensation insurance policy is
canceled? - ✔✔Proof of a new policy or exemption certificate
✔✔What is the consequence of violating the California Contractors License Law? -
✔✔License suspension, revocation or fines
✔✔How long are accusations that result in contractor license revocation disclosed to
the public? - ✔✔Indefinitely
✔✔What is the penalty for failing to post a notice to employees regarding workers'
compensation? - ✔✔Misdemeanor charges
✔✔What is the primary benefit of using the accrual accounting method for contractors?
- ✔✔Matching revenues and expenses to the time period they occur
