When a claim is paid from the Residential Contractors recovery fund, what happens to the responsible contractor's license?

When a claim is paid from the Residential Contractors Recovery Fund, the responsible contractor's license is suspended. This means that the contractor will not be able to legally operate or perform contracting work until specific conditions are met. The suspension serves as a disciplinary action to ensure accountability for the contractor's actions leading to the claim.

The suspension remains in effect while the contractor resolves the issues related to the repayment of the funds and may involve the restoration of the license after certain stipulations, such as repayment to the fund. This approach aims to protect consumers while also giving the contractor an opportunity to rectify their situation.

In contrast to cancellation or revocation, which would imply a more permanent termination of the contractor's license, suspension provides a path for the contractor to potentially regain their license after addressing the underlying issues. Withdrawal does not apply in this context, as it typically refers to situations where a contractor might voluntarily choose to terminate their own license, rather than being forced to do so due to a claim paid from the recovery fund.