Regulation .19 Financial Solvency.

An applicant for an original contractor's license shall submit to the Commission with the application a credit report from an approved credit reporting agency and a statement of all outstanding judgments and pending civil actions against the applicant.

The Commission shall consider this credit report and statement in determining whether the applicant has demonstrated financial solvency as required by Business Regulation Article, § 8-311(a)(9), Annotated Code of Maryland.

An applicant that does not demonstrate a net worth equal to the maximum Fund award available to one claimant for acts of omissions of one contractor under Business Regulation Article, §8-405(e)(1), Annotated Code of Maryland, must obtain a 2-year surety bond for that amount.

A licensee that obtains a surety bond to satisfy the financial solvency requirement must maintain a surety bond for an amount equal to the maximum Fund award available to one claimant for acts of omissions of one contractor at all times unless the licensee demonstrates a sufficient net worth and the Commission authorizes the licensee to cancel the bond.

At any time, the Commission may require a licensee to demonstrate financial solvency and may revoke a license if the licensee fails to do so.

The fact that an applicant or licensee holds a surety bond does not preclude the Commission from denying an application or revoking or suspending a license under Business Regulation Article, §8-311(a)(9, Annotated Code of Maryland.