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Bond Suspensions

All actively renewed licenses are required to comply with the bond requirements

Your license will be placed under bond suspension if any of the following occur:

  • Your surety company cancels your bond(s).
  • A judgment or payment of claim reduces the amount of a required bond or cash deposit (Business and Professions Code Section 7071.11).
  • Your surety company is no longer authorized through the California Department of Insurance to conduct business.
  • The responsible managing officer (RMO) no longer owns at least 10 percent of the total voting stock of the corporation for which he/she is the qualifier and therefore is no longer exempt from the Bond of Qualifying Individual requirement. Suspension is effective from the date the ownership requirement no longer exists.
    • IMPORTANT: You must notify the CSLB of any change to your license within 90 days of the change (Business and Professions Code, Section 7083).
  • You fail to maintain a disciplinary bond or cash deposit in full force and effect for the required amount of time.

Any work performed while the license is suspended is considered to be unlicensed and disciplinary action can be taken against you.

Lifting a Bond Suspension

A bond suspension can be lifted when one of the following documents are received at the CSLB's Headquarters Office and determined to be acceptable:

  • A rescission notice is received from the surety company rescinding the bond cancellation. The rescission notice must be received within 90 days of the bond cancellation date; or
  • A new bond or cash deposit is received. A bond must be received within 90 days of the bond effective date.

Alert symbol IMPORTANT: To avoid a break in licensing time, the bond coverage must be continuous.

If the bond was canceled due to a judgment or payment of claim, filing a new bond will lift the bond suspension but will not lift a judgment or payment of claim suspension.

Lifting a Bond Suspension Retroactively

If a bond is not received within 90 days of the bond effective date, the bond may be accepted and the bond suspension lifted retroactively if failure to have the bond on file with the CSLB was due to circumstances beyond the licensee's control (Business and Professions Code 7071.7). If this condition exist, you must do the following:

  • Complete a "Request for 7071.7 Bond Acceptance" form (13B-31) explaining the circumstances. This form can be obtained by calling the CSLB at 1-800-321-CSLB (2752).
  • Send the completed bond acceptance form along with the original bond to the CSLB's Headquarters Office.
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