What is the current minimum bond amount required for a residential contractor license in Arizona?
Correct Answer
C) $15,000
Arizona requires a minimum $15,000 surety bond for residential contractor licenses to protect consumers.
Why This Is the Correct Answer
Arizona Revised Statutes require residential contractors to maintain a minimum $15,000 surety bond as part of their licensing requirements. This bond amount was established to provide adequate consumer protection while balancing the financial burden on contractors. The $15,000 minimum applies to most residential contractor classifications and serves as financial security for homeowners in case of contractor default, poor workmanship, or failure to complete contracted work according to specifications.
Why the Other Options Are Wrong
Option B: $7,500
$25,000 exceeds Arizona's minimum bond requirement, though contractors may choose to carry higher bond amounts. This figure might be confused with commercial contractor requirements or voluntary higher coverage amounts, but the statutory minimum for residential contractors is $15,000.
Option D: $10,000
$7,500 is below Arizona's current minimum bond requirement for residential contractors. This amount may have been used in the past or could be confused with bond amounts required in other states, but it does not meet Arizona's current statutory minimum of $15,000.
Memory Technique
Remember 'Arizona Fifteen' - Arizona residential contractors need a $15,000 minimum bond, like the 15th state needs 15 thousand dollars.
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What is the minimum bond amount required for an Arizona residential contractor license?
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