OMVIC Practice Test

Choose the right answer about the Compensation Fund:

1. A customer can only make a claim if the dealer has gone out of business

2. Dealers pay $300 to the Fund each year

3. The maximum claim is $45,000

4. A salesperson must pay into the Fund

The correct answer is: The maximum claim is $45,000

The other options are incorrect because - Option A is incorrect because a customer can make a claim regardless of whether the dealer has gone out of business. - Option B is incorrect because it states that dealers pay $300 to the Fund each year, but this is incorrect as there is no set amount that dealers are required to pay into the Fund. - Option D is incorrect because it states that the salesperson must pay into the Fund, but the Fund is typically funded by the dealer, not the salesperson. The correct answer is C because it accurately states that the maximum claim that can be made from the Compensation Fund is $45,000. This means that if a dealer or salesperson acts dishonestly or fails to fulfill their obligations, the Fund will cover any financial losses up to $45,000 for the affected customer. Other incorrect options may confuse this amount with the required contribution of $300 by dealers or mistakenly state that a customer can only make a claim if the dealer has gone out of business.