Arizona Contractors License Practice Exam

If funds are paid from the fund for a claim, when will the license be suspended?

1. Until the next renewal period

2. Until the amount with interest of 10% is repaid

3. Immediately without the option for appeal

4. Until further notice

The correct answer is: Until the amount with interest of 10% is repaid

The correct answer is that the license will be suspended until the amount with interest of 10% is repaid. This is mandated by Arizona law, which stipulates that if a contractor's license has had funds drawn from the recovery fund to settle a claim, the contractor is responsible for reimbursing that amount along with interest. The suspension serves as a protective measure to ensure that contractors fulfill their financial obligations to repay the awarded funds before they can resume their business operations and maintain their licensure. This requirement reinforces the responsibility of contractors to maintain a valid license and ensures accountability within the industry. It is crucial for contractors to understand this process, as it provides an incentive to resolve any outstanding debts to the recovery fund promptly to avoid prolonged suspension of their license.