Under Michigan Act 299, what is the minimum insurance coverage amount required for general liability insurance for residential builders?
Correct Answer
A) $300,000 per occurrence
Michigan Act 299 requires residential builders to maintain general liability insurance of at least $300,000 per occurrence and $600,000 aggregate.
Why This Is the Correct Answer
Michigan Act 299 (the Residential Builders and Maintenance and Alteration Contractors Licensing Act) requires residential builders to carry a minimum of $300,000 per occurrence and $600,000 aggregate in general liability insurance. The per-occurrence minimum is $300,000.
Why the Other Options Are Wrong
Option B: $1,000,000 per occurrence
$1,000,000 per occurrence is a common commercial insurance threshold but exceeds the Michigan Act 299 minimum for residential builders.
Option C: $500,000 per occurrence
$500,000 per occurrence is higher than the Michigan statutory minimum of $300,000 for residential builders.
Option D: $100,000 per occurrence
$100,000 per occurrence is well below the Michigan Act 299 minimum. This amount does not satisfy the statutory requirement.
Memory Technique
Michigan Act 299 = $300,000 per occurrence. The '3' in 299 and the '3' in $300,000 align. Or: '299 → 300K — one step up from the Act number.'
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A contractor discovers that a subcontractor has filed a construction lien against their project. The general contractor believes the lien is invalid. What is the primary legal mechanism to challenge the lien in Michigan?
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