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

General liability insurance is a mandatory requirement for licensed home improvement contractors in Maryland. This type of insurance protects the contractor against claims of bodily injury or property damage to third parties that may arise from their business operations. The MHIC typically specifies a minimum coverage amount, such as $50,000, to ensure adequate protection for consumers.

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

The Home Improvement Guaranty Fund is a state-mandated fund in Maryland specifically established to protect homeowners. It provides financial reimbursement for actual losses incurred due to a licensed home improvement contractor's poor workmanship, breach of contract, or failure to perform agreed-upon services. This fund acts as a safety net for consumers.

Question 3

An individual who offers home improvement contracts.

Accepted Answer

Sales Person

Answer

In the context of home improvement, a salesperson is an individual who solicits, negotiates, or offers to enter into home improvement contracts on behalf of a contractor. Maryland law often requires these individuals to be licensed by the Home Improvement Commission, ensuring they also adhere to regulatory standards and consumer protection guidelines.

Question 4

A person who does or offers house improvements.

Accepted Answer

Contractor

Answer

A contractor is defined as a person who undertakes or offers to undertake home improvement work. In Maryland, to legally perform such services, this individual or entity must be licensed by the Maryland Home Improvement Commission (MHIC), which regulates the industry to protect consumers.

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

A project manager is responsible for the overall planning, execution, and completion of a construction project. They coordinate resources, manage timelines, and serve as the primary point of contact with the owner to ensure the project meets its objectives and client expectations. Their role is crucial in overseeing the entire scope of work.

(MHIC) Maryland Home Improvement Contractor Practice Test

(MHIC) Maryland Home Improvement Contractor Practice Test

MHIC Knowledge 1