Contractors will be assessed a fee for the Transaction Recovery Fund whenever the fund balance is less than

Contractors will be assessed a fee for the Transaction Recovery Fund whenever the fund balance is less than

• A. $100,000
• B. $200,000
• C. $400,000
• D. $600,000

Answer: (C)

The key idea is how the Transaction Recovery Fund is replenished. This fund is used to reimburse consumers harmed by licensed contractors. When the fund’s balance falls below a set minimum, the Board may levy an assessment on licensees to bring the fund back up. The established minimum is four hundred thousand dollars, so an assessment is triggered whenever the balance drops below that amount. The other figures aren’t the designated threshold, which is why four hundred thousand is the correct trigger.

The key idea is how the Transaction Recovery Fund is replenished. This fund is used to reimburse consumers harmed by licensed contractors. When the fund’s balance falls below a set minimum, the Board may levy an assessment on licensees to bring the fund back up. The established minimum is four hundred thousand dollars, so an assessment is triggered whenever the balance drops below that amount. The other figures aren’t the designated threshold, which is why four hundred thousand is the correct trigger.