Florida Contractor Practice Exam

Failure of a licensee to renew before a license expires shall cause the license to become _________.

1. Delinquent

2. Inactive

3. Void

4. Inactive until payment of a late fee and completion an additional 4 hours of continuing education

The correct answer is: Delinquent

When a licensee fails to renew their contractor license before it expires, the correct term for the status of that license is "delinquent." A delinquent license indicates that the license is not active because the renewal process has not been completed on time, but it can still be restored by addressing the renewal requirements. Typically, this means that the licensee may need to pay a late fee or fulfill additional continuing education requirements, as stipulated by the regulatory board. The distinction is important: while a delinquent status shows that the license has not been actively renewed, it does not mean that the license has become inactive in a permanent sense; rather, it is a temporary situation that can be remedied. This contrasts with terms like "inactive" and "void," which indicate different statuses regarding the license's functionality. An inactive license is one that has been explicitly put on hold by the licensee, while a void license signifies that it has no legal effect and cannot be reinstated. Thus, understanding that a delinquent license still allows for potential renewal and corrective action is crucial for licensees in maintaining their legal standing in the contracting field.