CSLB BUSINESS AND LAW EXAMPREP TEST
BANK 2026 COMPLETE EXAM QUESTIONS
AND ANSWERS 100% CORRECT
⩥ Bid Bond. Answer: This acts as an assurance that the contractor will
be able to complete the job as described in the contract.
⩥ Performance Bond or Contract Bond. Answer: This guarantees a
contractor will complete the project according to the agreed upon terms
& conditions.
⩥ Payment Bond. Answer: This guarantees that subcontractors and
suppliers will be paid by the contractor for properly performed work.
⩥ $35,000. Answer: Payment Bonds are required for federal government
contracts over $__________.
⩥ Fidelity Bond. Answer: This covers the business owner in case of
employee dishonesty or theft.
⩥ $15,000. Answer: Contractors must file a contractors bond OR submit
a cash deposit with the CSLB for $_______.
,⩥ $15,000. Answer: The value of a contractors bond must be $________
⩥ 90. Answer: The contractors bond must be filed with the CLSB within
___ days from the bond effective date.
⩥ True. Answer: True or False: A contractor must identify their type of
insurance when referring to themselves as "bonded" or "insured" in
advertisements or publications.
⩥ $12,500 (They can be exempt if the RMO can certify ownership of
10% or more of the voting stock in the company.). Answer: A business
must submit a separate $________ bond for RMEs or RMOs.
⩥ $100,000. Answer: A Limited Liability Surety Bond for $__________
is required in addition to the contractors bond for an LLC license.
⩥ Disciplinary Bond. Answer: This must be filed with the Registrar after
a license has been revoked or denied.
⩥ False. It's an additional requirement and may not be filed in place of
another bond.. Answer: True or False: A Disciplinary Bond can be
combined with any other bond.
, ⩥ $15,000 up to 10x the amount of the contractor's bond. Answer: The
Disciplinary bond amount ranges from _______ to _______, depending
on the violation.
⩥ 2 years. Answer: The Disciplinary Bond must be valid & on file with
the Registrar for how long?
⩥ Within 90 days. Answer: How soon should the Disciplinary bond be
filed with the CSLB?
⩥ C) Stocks or fluctuating investments. Answer: 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
⩥ D) All of the above. Answer: 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
BANK 2026 COMPLETE EXAM QUESTIONS
AND ANSWERS 100% CORRECT
⩥ Bid Bond. Answer: This acts as an assurance that the contractor will
be able to complete the job as described in the contract.
⩥ Performance Bond or Contract Bond. Answer: This guarantees a
contractor will complete the project according to the agreed upon terms
& conditions.
⩥ Payment Bond. Answer: This guarantees that subcontractors and
suppliers will be paid by the contractor for properly performed work.
⩥ $35,000. Answer: Payment Bonds are required for federal government
contracts over $__________.
⩥ Fidelity Bond. Answer: This covers the business owner in case of
employee dishonesty or theft.
⩥ $15,000. Answer: Contractors must file a contractors bond OR submit
a cash deposit with the CSLB for $_______.
,⩥ $15,000. Answer: The value of a contractors bond must be $________
⩥ 90. Answer: The contractors bond must be filed with the CLSB within
___ days from the bond effective date.
⩥ True. Answer: True or False: A contractor must identify their type of
insurance when referring to themselves as "bonded" or "insured" in
advertisements or publications.
⩥ $12,500 (They can be exempt if the RMO can certify ownership of
10% or more of the voting stock in the company.). Answer: A business
must submit a separate $________ bond for RMEs or RMOs.
⩥ $100,000. Answer: A Limited Liability Surety Bond for $__________
is required in addition to the contractors bond for an LLC license.
⩥ Disciplinary Bond. Answer: This must be filed with the Registrar after
a license has been revoked or denied.
⩥ False. It's an additional requirement and may not be filed in place of
another bond.. Answer: True or False: A Disciplinary Bond can be
combined with any other bond.
, ⩥ $15,000 up to 10x the amount of the contractor's bond. Answer: The
Disciplinary bond amount ranges from _______ to _______, depending
on the violation.
⩥ 2 years. Answer: The Disciplinary Bond must be valid & on file with
the Registrar for how long?
⩥ Within 90 days. Answer: How soon should the Disciplinary bond be
filed with the CSLB?
⩥ C) Stocks or fluctuating investments. Answer: 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
⩥ D) All of the above. Answer: 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
