How is the Recovery Fund funded?

• A. By annual license fees; if balance reaches $1,000,000, collections pause until balance falls below $500,000
• B. From State Income Tax Revenues
• C. From License Application Fees Only
• D. From Court-Imposed Fines

Answer: (D)

The Recovery Fund is funded by penalties and fines imposed through disciplinary actions against licensees. When a licensee is found to have violated laws or regulations, the resulting fines go into the fund to help reimburse consumers who suffer losses due to that misconduct. It isn’t financed by license fees, taxes, or application fees, which is why the correct answer emphasizes court-imposed fines as the source.