What is the maximum Recovery Fund payment available to a single claimant in South Carolina?
Correct Answer
A) $40,000
The South Carolina Residential Contractors Recovery Fund provides a maximum of $40,000 per claimant per incident.
Why This Is the Correct Answer
The South Carolina Residential Builders Commission administers the Residential Contractors Recovery Fund. Under SC Code of Laws, a single claimant can recover a maximum of $40,000 per incident from the fund. This cap exists to preserve fund solvency while providing meaningful consumer protection.
Why the Other Options Are Wrong
Option B: $15,000
$15,000 is well below the actual statutory cap and does not correspond to any recognized threshold in SC contractor law. It may be confused with minimum bond amounts or small claims limits in other contexts.
Option C: $75,000
$75,000 exceeds the actual cap and is a distractor. Some states have higher recovery fund limits, but South Carolina's residential contractor fund is capped at $40,000 per claimant.
Option D: $25,000
$25,000 is a plausible-sounding number but is incorrect. It may be confused with recovery fund limits in neighboring states or with the per-licensee aggregate cap in some jurisdictions.
Memory Technique
Associate '$40,000 SC Recovery' with the phrase 'Forty Thousand for the Palmetto State.' The SC state flag has a palmetto tree — picture a palm tree with a $40K price tag.
More South Carolina Questions
What is the maximum contract value a Tier 1 residential contractor can undertake in South Carolina?
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According to SC building codes, what is the maximum allowable deflection for a residential floor joist with a 16-foot span under live load?
A subcontractor completes $25,000 of electrical work but is not paid by the general contractor. The general contractor was paid by the owner. What is the subcontractor's lien priority against the property?
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A Class B contractor wants to bid on a $750,000 commercial project. What must the contractor do to be eligible?
A contractor's license expires on June 30th. They submit renewal application and fees on July 15th. What additional penalty must they pay?
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