CSLB Law & Business ExamBusiness Organization and LicensingHard
A sole qualifying RMO resigns from a corporation without CSLB notification of a replacement. What is the maximum number of days the corporation has to obtain a new qualifying individual before the license is automatically suspended?
- A90 days
- B30 days
- C180 days
- D60 days
Show answer & explanationAnswer & explanation
Correct answer: A. 90 days
When a licensee's sole qualifying individual disassociates, the license is placed on 'qualifier-out' status and the entity has 90 days to notify the CSLB of a new qualifying individual or replace the qualifier; failure to do so results in automatic suspension of the license.
Why the other options are wrong
- B. Thirty days is too short; the statutory window is longer.
- C. 180 days exceeds the actual statutory replacement period.
- D. Sixty days is not the CSLB's replacement deadline.
Qualifier Disassociation (90-Day Rule)
When a sole qualifying individual leaves a licensed entity, the entity has 90 days to replace the qualifier before the license is automatically suspended.
- License goes into 'qualifier-out' status upon disassociation
- 90-day window to name a new qualifier
- Automatic suspension follows if the deadline is missed
Memory trick: 'Ninety days or the doors stay closed.'