Arizona Contractors License Practice Exam

When is a person who was named on a license eligible to receive a new license?

1. Once they have completed a training course

2. Once the fund is paid in full

3. After a period of one year

4. Immediately upon request

The correct answer is: Once the fund is paid in full

A person who was named on a license is eligible to receive a new license once the fund is paid in full because this is a requirement established by the Arizona Registrar of Contractors. When a contractor's license is involved in claims, the associated financial obligations to the Arizona Contractor Recovery Fund (which provides compensation to consumers who have suffered financial loss due to contractor misconduct) must be settled. This ensures that all outstanding claims are appropriately addressed before the individual can receive a new license, reinforcing accountability within the contracting community. While completion of a training course or a specific period of time might seem like reasonable requirements, they do not specifically dictate eligibility for a new license related to prior claims. Similarly, requesting a new license without fulfilling the fund payment obligations would not be compliant with the regulations governing contractor licenses in Arizona.