What is the status of a person's license after a claim has been paid from the Real Estate Recovery Fund to settle a claim against that licensee

An active status indicates that a licensee is fully authorized to conduct real estate transactions. However, once a claim is paid from the Real Estate Recovery Fund, the license is suspended, meaning it cannot be considered active. Therefore, this option is incorrect as the license status changes to suspended rather than remaining active.

An inactive license status implies that the licensee is not currently engaging in real estate activities but has not had their license revoked or suspended. Since a claim payment from the Recovery Fund results in a suspension rather than an inactive status, this choice does not accurately reflect the consequences of such a claim.

Reinstatement refers to the process of restoring a previously suspended or revoked license after meeting certain requirements. However, immediately after a claim is paid from the Recovery Fund, the license is not reinstated; it is suspended. Thus, this option is misleading and incorrect regarding the immediate status of the license.