Free C-10 Practice Questions: Bonds, Insurance & Licensing
60 free questions with answers, explanations and the source for each. Answer one to see why. No sign-up.
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A $25,000 qualifying individual's bond is generally required when the qualifier is a responsible managing officer (RMO) who owns:
BPC 7071.9(c): a responsible managing officer does not need a qualifying individual's bond if the officer owns 10 percent or more of the voting stock and certifies it. An RMO who owns less must file the qualifying individual's bond of twenty-five thousand dollars ($25,000) under 7071.9(a).
Source: B&P §7071.9
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The California contractor license bond amount is:
BPC 7071.6(a): the applicant or licensee must file or have on file a contractor's bond in the sum of twenty-five thousand dollars ($25,000).
Source: B&P §7071.6
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A joint venture (JV) of contractors:
BPC 7029: a joint venture license is issued to any combination of individuals, corporations, limited liability companies, partnerships, or other joint ventures, each of which holds a current, active license in good standing.
Source: B&P §7029 (joint venture)
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Among California contractor classes A, B, and C, Class B is the:
Class B is the General Building Contractor classification.
Source: CSLB classifications
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Under BPC 7028(b), a first conviction for unlicensed contracting is punishable by a fine, or by:
BPC 7028(b): a first conviction is punishable by a fine not exceeding five thousand dollars ($5,000) or by imprisonment in a county jail not exceeding six months, or by both.
Source: B&P §7028
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Abandonment of a construction project without legal excuse is:
BPC 7107: abandonment without legal excuse of any construction project undertaken by the licensee as a contractor constitutes a cause for disciplinary action.
Source: B&P §7107
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A California contractor license is:
BPC 7075.1(a): no license, regardless of type or classification, shall be transferable to any other person or entity under any circumstances.
Source: B&P §7075.1
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California contractor licenses must be renewed every:
BPC 7140: all licenses expire two years from the last day of the month in which the license is issued, or two years from the date the renewed license last expired.
Source: B&P (license renewal)
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A company's qualifier can be an RMO or RME. An RMO (Responsible Managing Officer) is a(n):
BPC 7068(b)(3): a corporation qualifies by the appearance of a responsible managing officer or responsible managing employee who is qualified for the same license classification.
Source: CSLB qualifying individual (RMO)
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Under BPC 7112, omission or misrepresentation of a material fact by an applicant in obtaining a license is:
BPC 7112: omission or misrepresentation of a material fact by an applicant or a licensee in obtaining or renewing a license, or in adding a classification, constitutes a cause for disciplinary action.
Source: B&P §7114.1 / §480
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Under BPC 7071.11, a claim against a contractor's bond to recover unpaid wages or fringe benefits shall be brought within what period from the date the delinquencies were discovered?
BPC 7071.11 says a claim to recover wages or fringe benefits shall be brought within six months from the date that the wage or fringe benefit delinquencies were discovered.
Source: BPC 7071.11
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Under BPC 7124.6, if no additional disciplinary actions are filed against the licensee, a citation is disclosed to the public from the date of issuance and for how long after the date of compliance?
BPC 7124.6 says citations shall be disclosed from the date of issuance and for five years after the date of compliance if no additional disciplinary actions have been filed against the licensee during the five-year period.
Source: BPC 7124.6
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Under CCR Title 16 section 831, work in another classification is 'incidental and supplemental' to a specialty contractor's licensed trade when that work is:
CCR 831 defines other-classification work as incidental and supplemental when it is essential to accomplish the work in which the contractor is classified.
Source: CCR Title 16 831
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A 'C' license (like C-10) is a:
Regulation 832, "Specialty Contractors Classified," lists the specialty subclassifications, and Electrical is listed there as C-10. Specialty contractors perform their own trade under their classification.
Source: CSLB classifications
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An apprentice on the contractor's payroll is injured on the job. Under Labor Code 3700, every employer must secure the payment of:
Labor Code 3700: every employer except the state shall secure the payment of compensation, by being insured by an insurer authorized to write compensation insurance in California or by a certificate of consent to self-insure.
Source: Labor Code §3700
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The C-10 classification is for:
C-10 is California's Electrical Contractor classification.
Source: CSLB classifications
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An LLC's license is suspended for failing to be in good standing with the Secretary of State, but the company keeps performing work that requires a license. Under BPC 7076.2, each responsible person within the company can be personally liable for resulting damages to third parties up to:
BPC 7076.2 says that when an LLC license is suspended for this reason, each person within the company identified in Section 7028.5 shall be personally liable up to one million dollars ($1,000,000) each for damages to third parties from licensed work performed during the suspension.
Source: BPC 7076.2
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A licensed electrical contractor subcontracts part of a job to a contractor who is not licensed. Under BPC 7118, entering into a contract with a contractor while that contractor is unlicensed:
BPC 7118 says entering into a contract with a contractor while that contractor is not licensed as provided in the Contractors License Law constitutes a cause for disciplinary action.
Source: BPC 7118
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The $100,000 bond a licensed LLC contractor must maintain (in addition to the license bond) exists to protect:
B&P §7071.6.5 requires a contractor licensed as an LLC to carry a $100,000 surety bond written for the benefit of any employee damaged by the employer's failure to pay wages, interest on wages, or fringe benefits. Where a collective bargaining agreement applies, it also reaches welfare fund, pension, and apprentice program contributions. It protects the workers — not the LLC's members, not its suppliers, and not the board.
Source: B&P §7071.6.5
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The registrar notifies a corporation licensee that it is not registered and in good standing with the Secretary of State. Under BPC 7076.2, if it does not provide satisfactory proof of good standing, the license is suspended how long from the date of the notice?
BPC 7076.2 says the registrar notifies the licensee in writing, and the licensee shall be suspended 30 days from the date of the notice if it does not provide satisfactory proof that it is properly registered and in good standing with the Secretary of State.
Source: BPC 7076.2
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The 'bond of qualifying individual' (for an RMO/RME) is in the amount of:
The bond of qualifying individual (RMO/RME) is $25,000.
Source: B&P §7071.9
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Under BPC 7028, performing contracting work under a license that is under suspension for failure to pay a civil penalty is:
BPC 7028(a)(2): it is a misdemeanor to act as a contractor while performing acts under a license that is under suspension for failure to pay a civil penalty or to comply with an order of correction.
Source: CSLB discipline (suspension)
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Under BPC 7057(b), when a Class B contractor takes a prime contract for a project involving other trades, the contract must require at least two unrelated building trades or crafts other than:
BPC 7057(b): a general building contractor shall not take a prime contract for a project involving trades other than framing or carpentry unless the prime contract requires at least two unrelated building trades or crafts other than framing or carpentry (or it holds the right license or subcontracts the work).
Source: B&P Code 7057
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To obtain a C-10 license, an applicant must pass:
BPC 7065(a): the registrar qualifies applicants by written examination, including questions showing the knowledge required by Section 7068 and pertinent questions on the laws of this state and the contracting business and trade.
Source: CSLB examination
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Under BPC 7068, "actively engaged" for a qualifying responsible managing employee means working:
BPC 7068(c): "actively engaged" means working 32 hours per week, or 80 percent of the total hours per week that the applicant's business is in operation, whichever is less.
Source: B&P Code 7068 / CCR Title 16 823
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The contractor license bond primarily protects:
BPC 7071.5: the contractor's bond is for the benefit of a homeowner contracting for home improvement who is damaged by the licensee's violation of the chapter, a property owner building a single-family dwelling not intended for sale, a person damaged by a willful and deliberate violation or fraud, and an employee damaged by the licensee's failure to pay wages.
Source: B&P §7071.6 (bond purpose)
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The dollar amount of a disciplinary bond is set by the Registrar based on the seriousness of the violation and must be:
BPC 7071.8(b): the sum is fixed by the registrar based upon the seriousness of the violation, but shall not be less than twenty-five thousand dollars ($25,000) nor more than 10 times the amount required by Section 7071.6.
Source: B&P §7071.8
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The contractor license bond primarily protects:
BPC 7071.5: the contractor's bond is for the benefit of a homeowner contracting for home improvement who is damaged by the licensee's violation of the chapter, a property owner building a single-family dwelling not intended for sale, a person damaged by a willful and deliberate violation or fraud, and an employee damaged by the licensee's failure to pay wages.
Source: B&P §7071.6
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The CSLB issues contractor licenses to:
CSLB licenses sole owners, partnerships, corporations, LLCs, and joint ventures.
Source: CSLB business entity types
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When a contractor posts a cash deposit in lieu of a surety bond, the CSLB will accept only:
BPC 7071.4(a): a bond may be deposited with the registrar under CCP 995.710(a)(1), and no other method of deposit, including a certificate of deposit, satisfies a bond requirement. CCP 995.710(a)(1) allows lawful money of the United States or a cashier's check issued by a bank, savings association, or credit union.
Source: B&P §7071.4
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A property owner who contracted for construction of a single-family dwelling is damaged by the licensee's violation of the Contractors License Law. Under BPC 7071.5, that owner may recover on the contractor's bond only if the dwelling:
BPC 7071.5 makes the contractor's bond available to a property owner contracting for construction of a single-family dwelling, but that owner shall only recover if the dwelling is not intended for sale or offered for sale at the time the damages were incurred.
Source: BPC 7071.5
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A qualifying individual generally must have at least ___ of journey-level or higher experience in the classification (within the last 10 years):
The CSLB experience rule: every applicant must have had, within the last 10 years before applying, not less than four years experience as a journeyman, foreman, supervising employee or contractor in the class applied for.
Source: CSLB experience requirement
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If a surety pays a valid claim on a contractor's license bond, the contractor:
Civil Code 2847: if a surety satisfies the principal obligation, the principal is bound to reimburse what the surety has disbursed, including necessary costs and expenses. The bond is not the contractor's insurance.
Source: B&P §7071.5
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Diversion of funds received for a specific construction project, or failure to account for them, is:
BPC 7108: diversion of funds or property received for the prosecution or completion of a specific construction project, or failure substantially to account for their use on that project, constitutes a cause for disciplinary action.
Source: B&P §7108 / §7120
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A specialty contractor may perform work in a trade outside its licensed classification, without a separate license, only when that other-trade work is:
7059 permits a specialty contractor to use two or more crafts only where the other-craft work is incidental and supplemental to the craft for which it is licensed.
Source: B&P Code 7059
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The California contractor license bond amount is currently:
The current contractor license bond is $25,000.
Source: B&P §7071.6
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A licensee has received sufficient funds from the owner for a job but deliberately does not pay its supplier for the materials used on that job when the money is due. Under BPC 7120, this conduct:
BPC 7120 says willful or deliberate failure by a licensee to pay moneys when due for materials or services, when it has the capacity to pay or has received sufficient funds for that work, constitutes a cause for disciplinary action.
Source: BPC 7120
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An RMO who owns 10% or more of the corporation's voting stock is:
BPC 7071.9(c): the responsible managing officer of a corporation shall not be required to file a qualifying individual's bond if the officer owns 10 percent or more of the voting stock and certifies that fact on the registrar's form.
Source: B&P §7071.9
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When a surety makes payment on a claim against a contractor's license bond, whether through a court action or otherwise, BPC 7071.11 requires the surety to notify the registrar within:
BPC 7071.11 says that whenever the surety makes payment on a claim against the bond, whether or not through a court action, the surety shall, within 30 days of the payment, provide notice to the registrar.
Source: BPC 7071.11
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A limited liability company contractor must also carry an LLC employee/worker surety bond of:
BPC 7071.6.5(a): a limited liability company licensee must file or have on file a surety bond in the sum of one hundred thousand dollars ($100,000), for the benefit of employees owed wages or fringe benefits.
Source: B&P §7071.6.5
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Under Corporations Code 17703.04, the debts and obligations of a limited liability company are:
Corporations Code 17703.04(a): the debts, obligations, and liabilities of a limited liability company are solely its own, and they do not become a member's or manager's debts solely because the member acts as a member or the manager acts as a manager.
Source: Business entity liability
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Under B&P Code §7125, a licensed contractor that has employees must keep on file with the CSLB at all times:
Section 7125 makes a current Certificate of Workers' Compensation Insurance (or Certification of Self-Insurance) a condition precedent to issuing and maintaining a license.
Source: B&P Code §7125
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Before a surety settles a bond claim through a good faith payment, BPC 7071.11 gives the licensee at least how many days to provide a written protest?
BPC 7071.11 says that prior to the settlement of a claim through a good faith payment by the surety, a licensee shall have not less than 15 days in which to provide a written protest.
Source: BPC 7071.11
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After revocation of a license, a member of the personnel who knew of or took part in the violation generally cannot be issued a license for:
BPC 7102: after revocation, a license shall not be reissued, nor issued to any member of the personnel found to have had knowledge of or participated in the acts constituting grounds for revocation, within a minimum period of one year and a maximum period of five years after the final decision of revocation.
Source: CSLB discipline (revocation)
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An RME (Responsible Managing Employee) is a(n):
BPC 7068(c): a responsible managing employee is an individual who is a bona fide employee of the applicant and is actively engaged in the classification of work for which that person is the qualifying person.
Source: CSLB qualifying individual (RME)
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A licensed limited liability company (LLC) with five or fewer persons on its personnel of record must carry liability insurance with an aggregate limit of at least:
BPC 7071.19(b)(1): for a limited liability company licensee with five or fewer persons on the personnel of record, the aggregate limit shall not be less than one million dollars ($1,000,000).
Source: B&P §7071.19
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An 'inactive' contractor license means the holder:
BPC 7076.5(a): the holder of an inactive license shall not be entitled to practice as a contractor until the license is reactivated.
Source: B&P §7117.5
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A California Class B (General Building) contractor's work, by definition, must require the use of at least how many unrelated building trades or crafts?
Section 7057(a) defines a general building contractor as one whose work requires the use of at least two unrelated building trades or crafts (framing/carpentry excepted).
Source: B&P Code 7057
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Class A is the:
Class A is the General Engineering Contractor classification.
Source: CSLB classifications
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A contractor licensed as an individual dies, which cancels the license. Under BPC 7076, an immediate family member who wants a continuance of the license to complete projects in progress must have a written request received at the board's headquarters office within:
BPC 7076 says an individual license is canceled upon the death of the licensee, and a request by an immediate family member for a continuance must be made in writing and received at the board's headquarters office within 90 days after the death.
Source: BPC 7076
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A disciplinary bond must remain current and on file with the Registrar for a period of at least:
B&P §7071.8 requires the disciplinary bond to remain current and on file with the Registrar for at least two years, and the Registrar can require longer. The clock only runs while the license stays active and current — going inactive does not burn off the two years. Thirty days and six months are far too short to serve the bond's purpose, and nothing in §7071.8 imposes a ten-year term.
Source: B&P §7071.8
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A sole-owner contractor license is issued to:
BPC 7075.1(a): no license, regardless of type or classification, shall be transferable to any other person or entity under any circumstances.
Source: CSLB sole-owner license
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Under BPC 7000.5, the contractor licensing board in the Department of Consumer Affairs (CSLB) is the:
BPC 7000.5(a): there is in the Department of Consumer Affairs a Contractors State License Board, which consists of 15 members.
Source: CSLB (agency name)
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You must notify the CSLB of a qualifying change to your license within:
A qualifying change (e.g., a departing qualifier) must be reported to CSLB in writing within 90 days.
Source: B&P §7083 / §7068.2
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A joint venture license is automatically suspended by operation of law when:
7029 states a JV license is automatically suspended by operation of law during any period in which any member does not hold a current, active license in good standing.
Source: B&P Code 7029
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A licensee with employees lets its required workers' compensation insurance expire. Under BPC 7125.2, the automatic suspension of the license by operation of law is effective:
BPC 7125.2 says failure to obtain or maintain required workers' compensation insurance results in the automatic suspension of the license by operation of law, effective on the date that the relevant coverage lapses (or the date coverage is required, if earlier).
Source: BPC 7125.2
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A licensee already holding one specialty classification wants to add a second classification for which it qualifies. Regarding the license fee, the licensee:
BPC 7059(a): a licensee that meets the qualifications may be classified in more than one classification; the application carries the application fee, but no license fee shall be charged for an additional classification.
Source: B&P Code 7059
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Two separately licensed entities, each with a current, active license in good standing, want to act together as one contracting entity. They must first obtain a:
BPC 7029: a joint venture license is a license issued to any combination of individuals, corporations, limited liability companies, partnerships, or other joint ventures, each of which holds a current, active license in good standing.
Source: B&P Code 7029
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An applicant for a California contractor license must submit:
Contractor-license applicants must submit fingerprints for criminal background checks.
Source: B&P §7069
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Under BPC 7111, a licensee must keep records of its contracts, receipts, and disbursements available for inspection by the registrar for at least how long after completion of the project they refer to?
BPC 7111 makes it a cause for disciplinary action to fail to have contract records available for inspection by the registrar for a period of not less than five years after completion of the construction project to which they refer.