To ensure the license bond remains in effect after expiration, which action is best?

To ensure the license bond remains in effect after expiration, which action is best?

• A. Cancel the old bond and immediately issue a new one
• B. Make sure the effective date of the new bond is the same as the cancellation date of the old bond
• C. Extend the old bond for another year
• D. Do nothing until the license is up for renewal

Answer: (B)

Keeping the license bond continuously in effect is the essential idea. The bond must be active during the entire license term, and any lapse can put the license in jeopardy (suspension or penalties). Matching the new bond’s effective date to the cancellation date of the old bond ensures there is no gap in coverage, so the license remains continuously bonded and compliant. Cancelling and issuing without overlap risks a temporary lapse; extending an expired bond isn’t workable; and doing nothing until renewal creates a lapse.

Keeping the license bond continuously in effect is the essential idea. The bond must be active during the entire license term, and any lapse can put the license in jeopardy (suspension or penalties). Matching the new bond’s effective date to the cancellation date of the old bond ensures there is no gap in coverage, so the license remains continuously bonded and compliant. Cancelling and issuing without overlap risks a temporary lapse; extending an expired bond isn’t workable; and doing nothing until renewal creates a lapse.