MHIC Questions With Complete Solutions.

Home Improvement - The addition to or alteration, conversion, improvment, modernization, remodeling, repair, or replacement of a building Contractor - a person who performs or offers a home improvement for an owner Subcontractor - enters into a contract with contractors or other subcontractors to perform all or part of the home improvement. True or false? You can accept money before the contract is signed - FALSE! You can only accept money once the contract is signed True or false? A contractor cannot accept more than 1/3 of the contract price as a deposit - True True or false? Only the contractor can make changes to a contract - True Door- to - Door Sales Act - Only who can issue a home improvement license? - Maryland Home Improvement Commissions What is the passing mark for the exam? - 70% Each contractor is required to have a general liability insurance of AT LEAST how much? - $50,000 What is the Home Guaranty Fund? - A fund that compensates homeowners for loss caused by a licensed contractor. Actual loss means - the cost to correct or complete a home improvement that is incomplete, inadequate, or unworkmanlike.What isn't covered by the Home Guaranty Fund? - Interest, attorney fees, consequential damage, ect. How many days does a contractor have until a response is needed by the commission for a claim filed against them? - 10 days True or false? The homeowner should have a signed copy of the contract before work begins - True What is required on a contract? - Contractors name, address, and MHIC license #, approx. date of work, consumer notice, description of work, & deposit amount. What does the consumer notice state? - Phone # of commission office, Notice that both contractor and subcontractor are licensed, and that they are protected by home guaranty fun