MHIC Updated Study Guide Questions and
Answers | Focused Revision Pack | A+
Verified
• Home improvement . Answer: the addition to or alteration, conversion, improvement,
modernization, remodeling, repair, or replacement of a building or part of the building
• Excluded (is not a) home improvement . Answer: new home construction or work done
to comply with the guarantee of completion for a new building
• Excluded (is not a) home improvement . Answer: sale of materials, if the seller does
not arrange to perform, or does not perform, either directly or indirectly, the installation
of the materials
• Included (is a) home improvement . Answer: construction, improvement, or
replacement on the land adjacent to the residents of a driveway, fallout shelter, fence,
garage, landscaping, deck, pier, porch or swimming pool
• Included (is a) home improvement . Answer: installation in the residence of an awning,
fire alarm, or storm window
• Excluded (is not a) home improvement . Answer: work done on commonly owned
areas of condominiums
• Contractor . Answer: a person who performs or offers or agrees to perform a home
improvement for an owner. And employee of the owner is not a contractor.
• Home improvement contract . Answer: an agreement between a homeowner in a
contractor to perform a home improvement
• Handyman licensing . Answer: is required to hold a MHIC license, no matter how small
the contract.
• License renewal time frame . Answer: every two years the licensee must apply
• Licensing exemption . Answer: an employee of a contractor who is not a salesperson
• A licensing exemption . Answer: an employee of a licensed contractor who sells the
home improvement at a retail establishment
• A licensing exemption . Answer: a telephone solicitor
• An exemption from licensing . Answer: an employee of a subcontractor
, • A licensing exemption . Answer: a security system technician
• An exemption from licensing by MHIC . Answer: someone who holds another state
license and who is working with in the scope of that license, such as an architect or
plumber, and their salesperson
• Exam scores are good for how long? . Answer: 2 years
• Passing exam percentage . Answer: 70%
• Amount of general liability insurance . Answer: $50,000
• Experience required to be licensed . Answer: 2 years of trade experience or
comparable educational training
• Trade experience includes . Answer: participation in a registered apprentice program
• Trade experience includes . Answer: employment in performing home improvement
• Trade experience . Answer: employment in performing commercial or residential
construction, repairs or renovations
• Trade experience includes . Answer: participation in a community service or charitable
building or renovation program
• Trade experience includes . Answer: performing repairs and improvements that
require a building permit on one's own home or the home of family members
• Salespersons are licensed as . Answer: an individual
• Guaranty Fund compensates homeowners for . Answer: actual loss
• Guaranty Fund . Answer: protects homeowners who hire a licensed home
improvement contractors against actual loss caused by an incomplete, incorrect or
unworkmanlike job
• Total maximum guaranty fund payment per contractor . Answer: $100,000
• Contractor response time for a complaint . Answer: 10 days
• Limit at which commission may pay a claim without a hearing . Answer: $5,000
• Who must receive a signed copy of the contract prior to work starting? . Answer:
homeowner
Answers | Focused Revision Pack | A+
Verified
• Home improvement . Answer: the addition to or alteration, conversion, improvement,
modernization, remodeling, repair, or replacement of a building or part of the building
• Excluded (is not a) home improvement . Answer: new home construction or work done
to comply with the guarantee of completion for a new building
• Excluded (is not a) home improvement . Answer: sale of materials, if the seller does
not arrange to perform, or does not perform, either directly or indirectly, the installation
of the materials
• Included (is a) home improvement . Answer: construction, improvement, or
replacement on the land adjacent to the residents of a driveway, fallout shelter, fence,
garage, landscaping, deck, pier, porch or swimming pool
• Included (is a) home improvement . Answer: installation in the residence of an awning,
fire alarm, or storm window
• Excluded (is not a) home improvement . Answer: work done on commonly owned
areas of condominiums
• Contractor . Answer: a person who performs or offers or agrees to perform a home
improvement for an owner. And employee of the owner is not a contractor.
• Home improvement contract . Answer: an agreement between a homeowner in a
contractor to perform a home improvement
• Handyman licensing . Answer: is required to hold a MHIC license, no matter how small
the contract.
• License renewal time frame . Answer: every two years the licensee must apply
• Licensing exemption . Answer: an employee of a contractor who is not a salesperson
• A licensing exemption . Answer: an employee of a licensed contractor who sells the
home improvement at a retail establishment
• A licensing exemption . Answer: a telephone solicitor
• An exemption from licensing . Answer: an employee of a subcontractor
, • A licensing exemption . Answer: a security system technician
• An exemption from licensing by MHIC . Answer: someone who holds another state
license and who is working with in the scope of that license, such as an architect or
plumber, and their salesperson
• Exam scores are good for how long? . Answer: 2 years
• Passing exam percentage . Answer: 70%
• Amount of general liability insurance . Answer: $50,000
• Experience required to be licensed . Answer: 2 years of trade experience or
comparable educational training
• Trade experience includes . Answer: participation in a registered apprentice program
• Trade experience includes . Answer: employment in performing home improvement
• Trade experience . Answer: employment in performing commercial or residential
construction, repairs or renovations
• Trade experience includes . Answer: participation in a community service or charitable
building or renovation program
• Trade experience includes . Answer: performing repairs and improvements that
require a building permit on one's own home or the home of family members
• Salespersons are licensed as . Answer: an individual
• Guaranty Fund compensates homeowners for . Answer: actual loss
• Guaranty Fund . Answer: protects homeowners who hire a licensed home
improvement contractors against actual loss caused by an incomplete, incorrect or
unworkmanlike job
• Total maximum guaranty fund payment per contractor . Answer: $100,000
• Contractor response time for a complaint . Answer: 10 days
• Limit at which commission may pay a claim without a hearing . Answer: $5,000
• Who must receive a signed copy of the contract prior to work starting? . Answer:
homeowner
