MHIC Knowledge 1

Question 1

What coverage that can protect you from a range of claims of at least $50,000?

Accepted Answer

General liability insurance

Answer

Subcontractor

Answer

Contractor

Answer

Workers compensation

Question 2

The fund reimburses homeowners for genuine losses caused by the act or omission of a licensed contractor.

Accepted Answer

Home Improvement Guaranty Fund

Answer

Income Statement

Answer

Subcontractor

Answer

Home Improvement Contract

Question 3

An individual who offers home improvement contracts.

Accepted Answer

Sales Person

Answer

Subcontractor

Answer

Buyer

Answer

Broker

Question 4

A person who does or offers house improvements.

Accepted Answer

Contractor

Answer

Project Manager

Answer

Superintendent

Answer

Owner

Question 5

Person who organizes and coordinates construction projects to satisfy the overall aims of the project and serves as the primary contact with the owner.

Accepted Answer

Project manager

Answer

Contractor

Answer

Owner

Answer

Superintendent

Question 6

A person who conducts all or part of a house improvement but does not engage into an agreement with the homeowner.

Accepted Answer

Subcontractor

Answer

Project Manager

Answer

Contractor

Answer

Owner

Question 7

What is the maximum amount of money that the Commission will award to any single claimant from the Guaranty Fund?

Accepted Answer

$20,000.00

Answer

$5,000.00

Answer

$120,000.00

Answer

$10,000.00

Question 8

___________ refers to the expense of restoration, repair, replacement, or completion caused by poor workmanship, insufficient materials, or unfinished house renovation.

Accepted Answer

Actual loss

Answer

Punitive damages

Answer

Liquidated damages

Answer

Perceived loss

Question 9

If the contractor fails to re-pay the commission within _________________, the Commission may sue for nonpayment.

Accepted Answer

30 days

Answer

1 year

Answer

15 days

Answer

6 months

Question 10

A contract's primary elements

Accepted Answer

offer, acceptance, and consideration

Answer

implied and expressed

Answer

description of home improvement

Answer

acceptance, consideration, assent, and a legal object