Page | 1
MARYLAND HOME IMPROVEMENT
TEST BRAND NEW ACTUAL EXAM
WITH ANSWERS.
List 4 time manamente tips - correct answer -- Prioritize daily
tasks
- delegate effectively as possible
- Use
T or F - Top management has the strongest influence on
employees' ethical behavior. - correct answer -True - If top
managers demonstrate unethical behavior, employees are likely
to do the same
T or F - Technology is an essential tool - correct answer -True
What is all risk builder's insurance? - correct answer -is a form of
property insurance that covers owners and builders for buildings
under construction. This insurance typically covers machinery,
equipment, materials, supplies, fixtures that are part of the
structure or will become part of the structure. Additional coverage
can be added for temp structures like scaffold. In general, major
, Page | 2
construction defects ,such as poor workmanship ad faulty design
are not covered.
What is Libility Insurance - correct answer -design to protect
against 3rd party claims that arise from alleged negligence
resulting in bodily injury or property damage.
What is Commercial Liability Insurance (CGL) - correct answer -
CGL insurance offers basic liability coverage. CGL covers four
types of injuries, including
1- bodily injury that results in actual physical damage or loss for
individuals who are not employees
2- damage or loss to property not belonging to the business
3- personal injury including slander or damage to reputation
4- advertising injury, including charges of negligence that result
from promotion of goods an services
What is Professional Liability Insurance - correct answer -
Sometimes called Errors and Omissions, protects contractors
from negligence resulting from errors or omissions of designers
and architects
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What is key Man life Insurance - correct answer -Available as life
insurance, disability insurance or both
What is Workers Comp insurance - correct answer -Required to
be carried by any company that has one or more employees. It is
100% paid by employer and cannot be charged to employee.
Social Security - correct answer -Social Sec Admin is responsible
for paying retirement, disability and survivors benefits to workers
and their families. The SSA issues SSN which are required for
employees to legally work in US
What is a bond? - correct answer -A surety bond is a risk transfer
mechanism between surety company, the contractor and the
property owner.
The agreement binds the contractor to comply with the terms and
conditions of the contract. if the contractor cannot perform, the
surety assumes responsibility.
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Bond language or requirements - correct answer -1) Total amount
required for the bond (varies and can be up to 100% value of
contract)
2) Length of the bond
3) Requirement for notice of defect or lack of maintenance (a
period of completion of corrections is generally outlined after
notice of defect, and it also establishes a time period of response)
4) Bond enforcement (if a contractor fails to successfully complete
work or violates any requirement of the bond, enforcement
measures are outlined here)
Types of Bonds - correct answer -- Bid bond (guarantees that the
contractor, if awarded the job, will perform at submitted price)
- Performance bond (guarantees that the contractor will complete
the contract)
- Payment bond (guarantees subcontractors and suppliers will be
paid for work and material)
- maintenance bond (guarantees that for a stated period, typically
1 year, no defective workmanship or material will appear in the
completed project)
- completion bond (provides assurance to the financial backers of
a construction project that it will be completed on time)
- fidelity bond (covers business owners for losses due to
dishonest acts by their employees)
- lien bond (guarantees that liens cannot be places against the
owners property by contractors payment of services)
MARYLAND HOME IMPROVEMENT
TEST BRAND NEW ACTUAL EXAM
WITH ANSWERS.
List 4 time manamente tips - correct answer -- Prioritize daily
tasks
- delegate effectively as possible
- Use
T or F - Top management has the strongest influence on
employees' ethical behavior. - correct answer -True - If top
managers demonstrate unethical behavior, employees are likely
to do the same
T or F - Technology is an essential tool - correct answer -True
What is all risk builder's insurance? - correct answer -is a form of
property insurance that covers owners and builders for buildings
under construction. This insurance typically covers machinery,
equipment, materials, supplies, fixtures that are part of the
structure or will become part of the structure. Additional coverage
can be added for temp structures like scaffold. In general, major
, Page | 2
construction defects ,such as poor workmanship ad faulty design
are not covered.
What is Libility Insurance - correct answer -design to protect
against 3rd party claims that arise from alleged negligence
resulting in bodily injury or property damage.
What is Commercial Liability Insurance (CGL) - correct answer -
CGL insurance offers basic liability coverage. CGL covers four
types of injuries, including
1- bodily injury that results in actual physical damage or loss for
individuals who are not employees
2- damage or loss to property not belonging to the business
3- personal injury including slander or damage to reputation
4- advertising injury, including charges of negligence that result
from promotion of goods an services
What is Professional Liability Insurance - correct answer -
Sometimes called Errors and Omissions, protects contractors
from negligence resulting from errors or omissions of designers
and architects
, Page | 3
What is key Man life Insurance - correct answer -Available as life
insurance, disability insurance or both
What is Workers Comp insurance - correct answer -Required to
be carried by any company that has one or more employees. It is
100% paid by employer and cannot be charged to employee.
Social Security - correct answer -Social Sec Admin is responsible
for paying retirement, disability and survivors benefits to workers
and their families. The SSA issues SSN which are required for
employees to legally work in US
What is a bond? - correct answer -A surety bond is a risk transfer
mechanism between surety company, the contractor and the
property owner.
The agreement binds the contractor to comply with the terms and
conditions of the contract. if the contractor cannot perform, the
surety assumes responsibility.
, Page | 4
Bond language or requirements - correct answer -1) Total amount
required for the bond (varies and can be up to 100% value of
contract)
2) Length of the bond
3) Requirement for notice of defect or lack of maintenance (a
period of completion of corrections is generally outlined after
notice of defect, and it also establishes a time period of response)
4) Bond enforcement (if a contractor fails to successfully complete
work or violates any requirement of the bond, enforcement
measures are outlined here)
Types of Bonds - correct answer -- Bid bond (guarantees that the
contractor, if awarded the job, will perform at submitted price)
- Performance bond (guarantees that the contractor will complete
the contract)
- Payment bond (guarantees subcontractors and suppliers will be
paid for work and material)
- maintenance bond (guarantees that for a stated period, typically
1 year, no defective workmanship or material will appear in the
completed project)
- completion bond (provides assurance to the financial backers of
a construction project that it will be completed on time)
- fidelity bond (covers business owners for losses due to
dishonest acts by their employees)
- lien bond (guarantees that liens cannot be places against the
owners property by contractors payment of services)
