Filing of Claims. A claimant who seeks compensation from the Home Improvement Guaranty Fund (“Fund”) shall file a claim with the Commission on a claim form prepared by the Commission. This claim form shall contain at a minimum: The amount claimed based on actual loss; The facts and circumstances giving rise to the claim; The address of the home where the claimant resides; The address of each residential property, whether located within or outside of Maryland, owned by the claimant at any time from the date of the contract giving rise to the claim through the date of filing the claim, and the number of dwelling units at each property; and An affirmation by the claimant that all statements in the claim are true. Contractor's Response. The Commission shall, upon receipt of a claim, forward a copy of the claim to the contractor alleged to be responsible for the claimant's loss. A contractor to whom the Commission has forwarded a copy of a claim shall submit a written response to the allegations in the claim within 10 days of receipt of the claim. Amending of Claims. Once a verified claim has been filed with the Commission, the claimant may not amend the claim unless the claimant can establish to the satisfaction of the Commission that either the: Claimant did not know and could not have reasonably ascertained the facts on which the proposed amendment is based at the time the claim was filed; or Claimant's proposed amendment would not prejudice the contractor whose conduct gave rise to the claim. Review by Hearing Board. The claim, along with any written response received from a contractor, shall be referred to a hearing board of the Commission for investigation and review. Setting Claim Hearings. Unless the hearing board determines that the claim is made in bad faith, is frivolous, or is legally insufficient, the hearing board shall set the claim for a hearing before either a hearing officer, a hearing board comprised of commissioners other than the commissioners on the hearing board which reviewed the claim, or the full Commission. The hearing board may set the claim for a hearing: Solely on the claim; On both the claim and any regulatory charges arising from the same events or transactions on which the claim was based; or On the claim and any other outstanding claims and regulatory charges against the contractor alleged to be responsible for the claimant's loss. Dismissal of Claims by Hearing Board. Claimant's Response. If, upon initial review, the hearing board finds that the claim is frivolous, made in bad faith, or legally insufficient, the hearing board shall forward its finding, including the basis for its finding, to the claimant. The claimant shall have 30 days from the date of the hearing board's letter forwarding its finding to respond in writing to the hearing board. Final Decision to Dismiss. If the hearing board, after a review of any written response from the claimant, determines that the claim is frivolous, made in bad faith, or legally insufficient, the hearing board shall issue an Order dismissing the claim. Unless the Commission or any of its members determines within 15 days of the issuance by a hearing board of its Order that a full hearing by the Commission is required, the Order of the hearing board shall be a Final Order which may be appealed by the claimant directly to the circuit court where any party resides or has a principal place of business. The hearing board may dismiss a claim as legally insufficient if the claimant has unreasonably rejected good faith efforts by the contractor to resolve the claim. The hearing board may dismiss a claim as legally insufficient if the contractor was unlicensed when the contract was entered into but licensed during the performance of the contract unless: The claimant establishes by a preponderance of the evidence that the claimant did not know that the contractor was unlicensed at the time the contract was entered into; and A substantial portion of the contractor's alleged misconduct occurred after the contractor became licensed. Compulsory Binding Arbitration. When a contract between a claimant and a contractor requires that all contract disputes be submitted to binding arbitration, the claimant shall either: Submit their dispute to binding arbitration as required by the contract; or Provide evidence to the Commission that the claimant has made good faith efforts to bring the dispute to binding arbitration which the contractor has either rejected or not responded to. The Commission shall then give the contractor written notice that, if the contractor does not demonstrate to the Commission within 10 days of the date of the letter that it has engaged in the arbitration process and has paid its share of any fees necessary to commence the arbitration process, the Commission will deem the contractor to have waived the right to enforce the compulsory arbitration clause and process the claimant's claim pursuant to this chapter. Final Decisions by Court or Arbitrator. If a claimant provides the Commission with a final unappealable and non-default decision by a court or arbitrator awarding the claimant money damages against a licensed contractor when the conditions precedent to recovery set forth in Business Regulation Article, §8-405(a) and (c), Annotated Code of Maryland, are met, the Commission shall: Send a copy of the decision to the contractor and give the contractor 21 days to comment on the decision; and Issue a Final Order to compensate the claimant from the Fund for any actual losses awarded to the claimant by the decision and not paid by the contractor, subject to the limitations set out in Regulation .03B(1) and D(2) of this chapter. Time Limitation. A claim may not be brought against the Fund after 3 years from the date that the claimant discovered, or by exercise of ordinary diligence should have discovered, the loss or damage. An owner is ineligible to make a claim against the Fund under Business Regulation Article, §8-405(f)(2)(ii), Annotated Code of Maryland, if they do not reside in the home as to which the claim is made and they simultaneously owned more than three residences or dwelling places, whether located within or outside of Maryland, at any time from the date of the contract underlying their claim through the date the claim was filed.