MHIC NASCLA Contractors Guide Questions and Answers

MHIC NASCLA Contractors Guide Questions and Answers

1. How long does a claimant have to bring a claim against the guaranty fund?: 3
years from discovery of the loss or damage
2. How many days does a contractor have to respond in writing to the copy of
claim that was sent by the commission?: 10 days
3. If within after the commission gives notice , a contractor on whose
amount a claim was paid does not reimburse the fund in full, the commission
may sue the contractor for reimbursement.: 60 days
4. In addtion to full reimbursement of the fund, a contractor is responsible to
pay at least interest on the amount to reimburse.: 10 %
5. The state can record a lien against any real property owners by the contractor
for a debt owed to the fund: True
6. If the commission pays a claim from the fund base on the actions or omissions
of a contractor, the commission may suspend the contractors license until full
reimbursement of the fund plus at least 10%interest: True
7. A home improvement contract in compliance with the home improvement
laws would include all of the following except: Names and license numbers of subcontractors
8. A salesperson may not represent 2 contractors at the same time for the same proj
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ect.:True X
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9. Canasalespersonlegallyacceptmoneyforthemselvesfromthecustomer: No
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10. It is against the law for building and permits departments to issue a permit toco
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ntractor withoutthe contractors license number.: True X2 X
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11. If a contractor fails to correct violation of the building code within reasonable ti
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me period, the county or municipality inspecting the project shall notify the com
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mission: True X2




12. What is the maximum fine for contracting without a license-second offense-
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: $5,000 and/or 2 years in jail or both
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13. Contractor, jack smith, is not getting along with hector jones , his customer. If h X2 X2 X2 X2 X2 X2 X2 X2 X2 X2 X2 X2 X2 X2




e decides not to complete the contract, has jack broken any laws?: Yes
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14. Can a contractor decide to use material other than specified in the contract doc
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uments without getting permission from the owner?: No
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