According to TCA 62-6, what is the minimum net worth requirement for a Tennessee contractor seeking a license classification with an unlimited monetary limit?
Correct Answer
A) $75,000
TCA 62-6 requires a minimum net worth of $75,000 for contractors seeking unlimited monetary limit classifications.
Why This Is the Correct Answer
Option A is correct. TCA 62-6 explicitly sets $75,000 as the minimum net worth a contractor must demonstrate to qualify for a license classification that carries an unlimited monetary limit. This threshold ensures the contractor has sufficient financial capacity to undertake large-scale projects.
Why the Other Options Are Wrong
Option B: $50,000
$50,000 is below the statutory minimum. This figure may be confused with net worth thresholds for lower monetary limit classifications, but it does not satisfy the unlimited-limit requirement.
Option C: $100,000
$100,000 exceeds the statutory figure and is not the amount codified in TCA 62-6. Candidates who round up or confuse this with bonding or insurance amounts may choose this distractor.
Option D: $150,000
$150,000 is a significant overstatement of the requirement. No current Tennessee classification for a standard contractor license requires this level of net worth.
Memory Technique
Associate '$75K = Unlimited TN license' with the phrase 'Three-quarters of a hundred opens the unlimited door in Tennessee.' The number 75 is three-quarters of 100 — an easy anchor.
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