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The Real Estate Guaranty Fund, administered by the Department of Consumer Protection, can reimburse consumers who suffer financial losses in unscrupulous real estate transactions.
The Guaranty Fund is funded through assessments against member insurers made after a member insurer is declared insolvent by a court of law. These funds are used to pay valid claims, as well as administrative expenses.
A state guaranty fund is administered by a U.S. state to protect policyholders in the event that an insurance company defaults on benefit payments or becomes insolvent. The fund only protects beneficiaries of insurance companies that are licensed to sell insurance products in that state.
What is the Guaranty Fund? The Maryland Home Improvement Commission administers a Guaranty Fund, which exists to reimburse homeowners for the actual loss caused by a licensed contractor who performed a home improvement job in an unworkmanlike, incorrect, or incomplete manner, or who abandoned a home improvement job.
Obtaining the License Attend licensing workshop (optional). Pass examination administered by PSI Examination prior to applying for license. Register trade name with Assessments and Taxation (410) 767-1330. Demonstrate financial solvency. Provide credit report. Provide certificate of liability insurance.
Insurers that sell insurance in a given state are assessed amounts to pay into the guaranty funds to provide for payment of claims owed by insolvent insurance entities in that state.
A handyman working in Maryland will need a Home Improvement license from the Department of Labor, Licensing and Regulation. ing to the department website, this will cover additions or alterations, conversions, improvement, modernization, remodeling, repair or replacement of a residential building.
Maryland's Home Improvement Law requires that all contracts for home improvement work be in writing and signed by both the consumer and the business before work begins or any money is paid. Avoid any contractor whose contract does not have their name, address, and MHIC license number preprinted on the contract.