Under ORS 701, what is the minimum amount of public liability insurance required for a CCB licensed contractor?
Correct Answer
C) $200,000
ORS 701 requires CCB licensed contractors to maintain minimum public liability insurance of $200,000.
Why This Is the Correct Answer
Under Oregon Revised Statutes (ORS) 701, the Construction Contractors Board (CCB) requires all licensed contractors to maintain a minimum of $200,000 in public liability insurance coverage. This requirement ensures adequate protection for the public and property owners in case of accidents, injuries, or property damage that may occur during construction work. The $200,000 minimum is specifically mandated by state law and is a prerequisite for maintaining an active CCB license.
Why the Other Options Are Wrong
Option B: $25,000
$25,000 is significantly below the statutory requirement under ORS 701. This amount would provide insufficient coverage for potential liability claims in construction work and does not meet the legal minimum established by the Oregon Construction Contractors Board for licensed contractors.
Option D: $50,000
$50,000 falls well short of the required minimum public liability insurance coverage mandated by ORS 701. While this might seem like substantial coverage, it is only one-quarter of the actual legal requirement for CCB licensed contractors in Oregon.
Memory Technique
Remember 'Oregon CCB = 200K' - think 'Two Hundred for Construction Coverage in Oregon' or visualize two $100 bills stacked to represent the $200,000 minimum requirement.
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