Under TCA 62-6, what is the minimum bond amount required for a Tennessee residential contractor license?
Correct Answer
B) $10,000
Tennessee requires a minimum $10,000 surety bond for residential contractor licensing under TCA 62-6.
Why This Is the Correct Answer
TCA 62-6 establishes a minimum $10,000 surety bond requirement for residential contractor licensing in Tennessee. This bond provides financial protection for homeowners if the contractor fails to complete work or comply with applicable laws.
Why the Other Options Are Wrong
Option A: $25,000
$25,000 exceeds the statutory minimum bond amount for a residential contractor license in Tennessee. This higher figure may apply in other states or for different license classifications, but not for Tennessee residential licenses under TCA 62-6.
Option C: $5,000
$5,000 falls below the statutory minimum. Tennessee law requires at least $10,000 to ensure meaningful consumer protection; a $5,000 bond would be legally insufficient to obtain or maintain the license.
Option D: $15,000
$15,000 is above the $10,000 statutory minimum. While a contractor could voluntarily obtain a higher bond, $15,000 is not the minimum required by TCA 62-6 and is not the answer the statute mandates.
More Tennessee Questions
Calculate the Tennessee workers' compensation premium for a roofing contractor with a $180,000 annual payroll and a rate of $28.50 per $100 of payroll:
How many hours of continuing education are required for Tennessee contractor license renewal?
Calculate the workers' compensation experience modification factor for a contractor with $85,000 in expected losses and $68,000 in actual losses:
Under Tennessee lien law, what is the maximum time limit to enforce a mechanics lien after it has been filed?
Under Tennessee lien law, which party has priority when multiple liens are filed against the same property?
Under Tennessee building codes, what is the maximum allowable deflection for a residential floor joist with a 16-foot span under live load?
A homeowner in Nashville hires an unlicensed contractor for $8,000 worth of electrical work. The contractor demands payment but the work fails inspection. Under TCA 62-6, what recourse does the unlicensed contractor have?
Under Tennessee building codes, what is the minimum ceiling height required for habitable rooms in residential construction?
A Tennessee contractor has 8 employees working on a residential project. The total weekly payroll is $6,400. If the workers' compensation rate for residential construction is $8.50 per $100 of payroll, what is the weekly workers' compensation premium?
A contractor is installing a septic system for a new home in rural Tennessee. The estimated cost is $8,500. According to TCA 62-6, what licensing requirement applies?
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Previous Question
A Tennessee contractor completes $45,000 worth of work on a residential project. The owner fails to pay the final invoice of $8,500. How many days does the contractor have to file a mechanics lien after the last day of work under Tennessee lien law?
Next Question
A contractor's Tennessee license expires on June 30th. They submit a renewal application on August 15th. What additional requirement must be met beyond the standard renewal fee?