Which brings into question number 2. I see number 2 everywhere. I use number 2 but add the word insured after bonded. As in:
Licensed, bonded and insured.
Is number 2 illegal?
You may use "insured", and even "licensed".... But the word "Bonded" is considered an unfair advertising practice, as all who are licensed,
ARE bonded. Not all contractors are licensed.... And not all are insured....
I'm sure anyone who has their license gets the neat little news letter, 50% of which is a list of revoked and suspended licenses and the reasons listed as the legal codes violated, most of which have multiple legal codes behind them. This one shows up as an advertising violation. While many of these people got busted for something else - most of them will end up with an advertising violation tacked on to it.
As far as the OP goes - the one thing to remember about the CSLB is that they are of the opinion, and many other people I have known (including myself) are too - that "CONTRACTING IS ABOUT CONTRACTS!" Not the work you do, not how much code you might know, or anything else.... It must be remembered that the CSLB is a consumer protection agency, first and foremost... The law part is the most important to them. Eventually - it may be the most important part to you. Why - because you ARE going to get screwed by what you put on, or fail to put on paper - sooner or later. And they don't want you screwing anyone else - on purpose or not.