What is the maximum amount a contractor can collect from the Georgia Contractors Recovery Fund for a single claim?
Correct Answer
B) $75,000
The Georgia Contractors Recovery Fund provides up to $75,000 per claim for damages caused by licensed contractors who fail to fulfill contractual obligations.
Why This Is the Correct Answer
The Georgia Contractors Recovery Fund provides a maximum of $75,000 per individual claim. This fund compensates property owners who suffer financial harm from a licensed contractor's failure to complete work, abandonment, or violation of contractual obligations. The $75,000 cap applies per claim regardless of the total damages suffered.
Why the Other Options Are Wrong
Option A: $50,000
$50,000 is below the actual statutory maximum. This figure might be confused with recovery fund limits in other states or other Georgia consumer protection mechanisms.
Option C: $25,000
$25,000 significantly understates the Georgia Recovery Fund cap. This lower amount may be confused with small claims court limits or other state fund maximums.
Option D: $100,000
$100,000 exceeds the actual statutory cap. While a higher amount would seem more protective, Georgia law sets the per-claim maximum at $75,000.
Memory Technique
Associate $75,000 with Georgia by thinking '75 = three-quarters.' The Georgia Recovery Fund gives you three-quarters of the way to $100K. Or remember: Georgia has 159 counties (most in the US) — a unique state with a unique $75K cap that isn't a round number.
More Georgia Questions
A contractor discovers that a building permit was issued in error and the project violates setback requirements. According to Georgia regulations, what is the contractor's primary obligation?
A contractor employs workers in both construction and office roles. The construction rate is 11.2 per $100 and office rate is 0.8 per $100. Construction payroll is $85,000 and office payroll is $45,000. What is the total workers compensation premium?
Which situation would require a Georgia contractor to obtain workers' compensation insurance?
A contractor receives a stop work order from the local building official. The contractor continues working despite the order. What is the typical penalty range?
A contractor's license expires on June 30th. They submit a renewal application on July 15th. What additional requirement must they meet?
A Georgia contractor completes work valued at $15,000 on March 1st. The property owner fails to pay. What is the deadline for filing a materialman's lien?
A contractor fails to pay workers' compensation premiums and coverage lapses. An employee is injured the next day. What is the contractor's liability?
A contractor discovers that the local building official is interpreting a code provision differently than expected. What is the proper appeal process in Georgia?
A contractor's annual payroll is $450,000. If the workers compensation rate is 8.5 per $100 of payroll, what is the annual premium?
What is the threshold amount above which a contractor must be licensed in Georgia?
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