North Carolina License LawIntermediateNorth Carolina Exam

If the NCREC pays a Recovery Fund claim on behalf of a licensee, what automatically happens to that licensee's license?

AIt is suspended for 90 days
BIt is revokedCorrect
CIt is placed on probation
DNothing, unless the licensee fails to repay

Why It is revoked Is Correct

Answer B: It is revoked

When the Recovery Fund pays a claim on behalf of a licensee, that licensee's license is automatically revoked and cannot be reinstated until the full amount plus interest is repaid.

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