MHIC NASCLA CONTRACTORS COMPLETE
EXAM STUDY QUESTIONS WITH VERIFIED
ANSWERS
1. How long does a claimant have to bring a claim against the guaranty fund? -
ANSWER 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? - ANSWER 10 days
3. If a contractor sells personstoos selling or working with the contractor for
any reason, the contractor has a responsibility to the state to inform the
commission? - ANSWER True
4. All advertising has to provide the identifier "Maryland home improvement
commission license no “or "MHIC - ANSWER True
5. What is the maximum penalty the commission may impose upon a
contractor, licensed or unlicensed , per violation of these laws - ANSWER
$5,000
6. Advertising must be done in a way as to avoid misrepresentating the
product, service or Terms of sale so as not to deceive the customer. -
ANSWER True
7. An applicant must provide to the commission, a credit report with their
application. - ANSWER True
,8. How many days does a contractor have to respond to a receipt of a claim
from commission? - ANSWER 10 days
9. How many members are there in the Maryland home improvement
commission? - ANSWER 9 members
10.Of the 9 members on the commission , how many are experienced in home
improvement ? - ANSWER 4 member
11.Does home improvement include work done on an individual condominium
unit? - ANSWER Yes
12.Does home improvement include work done on a swimming pool? -
ANSWER Yes
13.Does a home improvement contract HAVE to be in writing in order to
preserve your lien rights? - ANSWER Yes
14.Contractors who can only contract with a contractor or a subcontractor are: -
ANSWER Subcontractors
15.A county or municipality in Maryland _____________ require a contractor
to get authorization from an official in that city to be able to contract in that
municipality. - ANSWER Cannot
16.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. - ANSWER 60 days
, 17.In addtion to full reimbursement of the fund, a contractor is responsible to
pay at least _________interest on the amount to reimburse. - ANSWER 10
%
18.The state can record a lien against any real property owners by the contractor
for a debt owed to the fund - ANSWER True
19.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 -
ANSWER True
20.A home improvement contract in compliance with the home improvement
laws would include all of the following except - ANSWER Names and
license numbers of subcontractors
21.A salesperson may not represent 2 contractors at the same time for the same
project. - ANSWER True
22.Can a sales person legally accept money for themselves from the customer -
ANSWER No
23.It is against the law for building and permits departments to issue a permit to
contractor without the contractors license number. - ANSWER True
24.If a contractor fails to correct violation of the building code within
reasonable time period, the county or municipality inspecting the project
shall notify the commission - ANSWER True
EXAM STUDY QUESTIONS WITH VERIFIED
ANSWERS
1. How long does a claimant have to bring a claim against the guaranty fund? -
ANSWER 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? - ANSWER 10 days
3. If a contractor sells personstoos selling or working with the contractor for
any reason, the contractor has a responsibility to the state to inform the
commission? - ANSWER True
4. All advertising has to provide the identifier "Maryland home improvement
commission license no “or "MHIC - ANSWER True
5. What is the maximum penalty the commission may impose upon a
contractor, licensed or unlicensed , per violation of these laws - ANSWER
$5,000
6. Advertising must be done in a way as to avoid misrepresentating the
product, service or Terms of sale so as not to deceive the customer. -
ANSWER True
7. An applicant must provide to the commission, a credit report with their
application. - ANSWER True
,8. How many days does a contractor have to respond to a receipt of a claim
from commission? - ANSWER 10 days
9. How many members are there in the Maryland home improvement
commission? - ANSWER 9 members
10.Of the 9 members on the commission , how many are experienced in home
improvement ? - ANSWER 4 member
11.Does home improvement include work done on an individual condominium
unit? - ANSWER Yes
12.Does home improvement include work done on a swimming pool? -
ANSWER Yes
13.Does a home improvement contract HAVE to be in writing in order to
preserve your lien rights? - ANSWER Yes
14.Contractors who can only contract with a contractor or a subcontractor are: -
ANSWER Subcontractors
15.A county or municipality in Maryland _____________ require a contractor
to get authorization from an official in that city to be able to contract in that
municipality. - ANSWER Cannot
16.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. - ANSWER 60 days
, 17.In addtion to full reimbursement of the fund, a contractor is responsible to
pay at least _________interest on the amount to reimburse. - ANSWER 10
%
18.The state can record a lien against any real property owners by the contractor
for a debt owed to the fund - ANSWER True
19.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 -
ANSWER True
20.A home improvement contract in compliance with the home improvement
laws would include all of the following except - ANSWER Names and
license numbers of subcontractors
21.A salesperson may not represent 2 contractors at the same time for the same
project. - ANSWER True
22.Can a sales person legally accept money for themselves from the customer -
ANSWER No
23.It is against the law for building and permits departments to issue a permit to
contractor without the contractors license number. - ANSWER True
24.If a contractor fails to correct violation of the building code within
reasonable time period, the county or municipality inspecting the project
shall notify the commission - ANSWER True
