MHIC Test Questions with correct Answers
How long must a person be a citizen/member of MD before they can be appointed to the
commission?
5 years
How often does the commission hold meetings at a minimum?
Every month
Who is a full time employee of the state?
Executive Director
People hired to investigate complaints about home improvement projects work under
The director of commission
If a homeowner experiences a financial loss due to a contractors negligence, what steps
should they take to seek compensation under home improvement guaranty fund
They should fine the claim with the commission and provide evidence of the loss
What is the minimum required balance for the home improvment guaranty fund
according to the Maryland Home Improvement law?
$250,000
What is the minimum balance that triggers a report submission by the commission
regarding the fund?
$250,000
What fund is the commissioner responsible for establishing under the MD home
improvement law?
, Home improvement guaranty fund
The home improvement guaranty fund, what explain what is meant by actual loss
is refers to the financial damages incurred by a claimant due to a contractors failure to fulfill
their obligations
The significance of maintaining a separate account within the home improvement
guaranty fund
The separate account ensures that funds are available specifically for experts witness
expenses related to claims
If the state treasurer decided to changed the investment strategy for the home
improvement guaranty fund to a more aggressive approach, what potential impact
could this have on the funds stability?
Increase the risk loss and volatility in the funds value
If a contractor is licensed under the MD home improvement law but is also considering
taking on a period that requires a construction license, what should they do?
They should verify whether the project falls under the scope of the MD improvement law and
if a construction license is necessary
If a contractors license has been revoked due to non-compliance with the MD
improvement law- to regain their license they should
Pass the examination required by the commission
What minimum level must the guaranty fund be maintained at?
$250,000
How long must a person be a citizen/member of MD before they can be appointed to the
commission?
5 years
How often does the commission hold meetings at a minimum?
Every month
Who is a full time employee of the state?
Executive Director
People hired to investigate complaints about home improvement projects work under
The director of commission
If a homeowner experiences a financial loss due to a contractors negligence, what steps
should they take to seek compensation under home improvement guaranty fund
They should fine the claim with the commission and provide evidence of the loss
What is the minimum required balance for the home improvment guaranty fund
according to the Maryland Home Improvement law?
$250,000
What is the minimum balance that triggers a report submission by the commission
regarding the fund?
$250,000
What fund is the commissioner responsible for establishing under the MD home
improvement law?
, Home improvement guaranty fund
The home improvement guaranty fund, what explain what is meant by actual loss
is refers to the financial damages incurred by a claimant due to a contractors failure to fulfill
their obligations
The significance of maintaining a separate account within the home improvement
guaranty fund
The separate account ensures that funds are available specifically for experts witness
expenses related to claims
If the state treasurer decided to changed the investment strategy for the home
improvement guaranty fund to a more aggressive approach, what potential impact
could this have on the funds stability?
Increase the risk loss and volatility in the funds value
If a contractor is licensed under the MD home improvement law but is also considering
taking on a period that requires a construction license, what should they do?
They should verify whether the project falls under the scope of the MD improvement law and
if a construction license is necessary
If a contractors license has been revoked due to non-compliance with the MD
improvement law- to regain their license they should
Pass the examination required by the commission
What minimum level must the guaranty fund be maintained at?
$250,000
