Maryland Home Improvement Contractor
Exam With Actual Questions & Correct
Answers, Plus Rationales/Expert Verified
For Guaranteed Pass 2026/Latest
Update/Instant Download Pdf
1. What is the primary purpose of the Maryland Home Improvement
Commission (MHIC)?
A. To regulate plumbing codes
B. To license and regulate home improvement contractors
C. To issue building permits
D. To enforce OSHA regulations
Answer: B
Rationale: The MHIC regulates and licenses home improvement
contractors and administers consumer protection laws related to
home improvement work.
2. A home improvement contract in Maryland must be in writing
when the project exceeds:
A. $100
B. $250
C. $500
D. $1,000
,Answer: C
Rationale: Maryland law requires a written contract for home
improvement projects over $500.
3. Which of the following is required on a Maryland home
improvement contract?
A. Social security number of homeowner
B. MHIC license number
C. Architect approval
D. County tax ID
Answer: B
Rationale: Contractors must include their MHIC license number on all
contracts.
4. The maximum deposit a contractor can collect before work begins
is generally:
A. 10% of contract price
B. 25% of contract price
C. 33% of contract price
D. 50% of contract price
Answer: C
Rationale: Maryland law typically limits upfront deposits to one-third
of the contract price.
5. A home improvement contractor license in Maryland is issued by:
A. Maryland Department of Labor
B. Maryland Insurance Administration
, C. County Clerk’s Office
D. EPA
Answer: A
Rationale: The Maryland Department of Labor oversees licensing
through MHIC.
6. A homeowner complaint against a contractor is handled first by:
A. Civil court
B. MHIC complaint process
C. Federal court
D. Better Business Bureau
Answer: B
Rationale: Complaints must first go through the MHIC administrative
process.
7. The Maryland Home Improvement Guaranty Fund is designed to:
A. Pay contractor taxes
B. Cover losses from contractor fraud or abandonment
C. Fund building permits
D. Pay employee wages
Answer: B
Rationale: The fund compensates homeowners for losses caused by
licensed contractor violations.
8. Which insurance is typically required for contractors?
A. Life insurance
B. Health insurance
, C. General liability insurance
D. Flood insurance
Answer: C
Rationale: Contractors are required to maintain general liability
insurance for protection.
9. A contractor license must be renewed every:
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Answer: B
Rationale: MHIC licenses are typically renewed every two years.
10. Which action may result in license suspension?
A. Advertising discounts
B. Performing work without permit
C. Using subcontractors
D. Hiring employees
Answer: B
Rationale: Performing work without required permits can result in
disciplinary action.
11. A home improvement contractor includes which of the
following?
A. Road paving
B. Roofing and remodeling
Exam With Actual Questions & Correct
Answers, Plus Rationales/Expert Verified
For Guaranteed Pass 2026/Latest
Update/Instant Download Pdf
1. What is the primary purpose of the Maryland Home Improvement
Commission (MHIC)?
A. To regulate plumbing codes
B. To license and regulate home improvement contractors
C. To issue building permits
D. To enforce OSHA regulations
Answer: B
Rationale: The MHIC regulates and licenses home improvement
contractors and administers consumer protection laws related to
home improvement work.
2. A home improvement contract in Maryland must be in writing
when the project exceeds:
A. $100
B. $250
C. $500
D. $1,000
,Answer: C
Rationale: Maryland law requires a written contract for home
improvement projects over $500.
3. Which of the following is required on a Maryland home
improvement contract?
A. Social security number of homeowner
B. MHIC license number
C. Architect approval
D. County tax ID
Answer: B
Rationale: Contractors must include their MHIC license number on all
contracts.
4. The maximum deposit a contractor can collect before work begins
is generally:
A. 10% of contract price
B. 25% of contract price
C. 33% of contract price
D. 50% of contract price
Answer: C
Rationale: Maryland law typically limits upfront deposits to one-third
of the contract price.
5. A home improvement contractor license in Maryland is issued by:
A. Maryland Department of Labor
B. Maryland Insurance Administration
, C. County Clerk’s Office
D. EPA
Answer: A
Rationale: The Maryland Department of Labor oversees licensing
through MHIC.
6. A homeowner complaint against a contractor is handled first by:
A. Civil court
B. MHIC complaint process
C. Federal court
D. Better Business Bureau
Answer: B
Rationale: Complaints must first go through the MHIC administrative
process.
7. The Maryland Home Improvement Guaranty Fund is designed to:
A. Pay contractor taxes
B. Cover losses from contractor fraud or abandonment
C. Fund building permits
D. Pay employee wages
Answer: B
Rationale: The fund compensates homeowners for losses caused by
licensed contractor violations.
8. Which insurance is typically required for contractors?
A. Life insurance
B. Health insurance
, C. General liability insurance
D. Flood insurance
Answer: C
Rationale: Contractors are required to maintain general liability
insurance for protection.
9. A contractor license must be renewed every:
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Answer: B
Rationale: MHIC licenses are typically renewed every two years.
10. Which action may result in license suspension?
A. Advertising discounts
B. Performing work without permit
C. Using subcontractors
D. Hiring employees
Answer: B
Rationale: Performing work without required permits can result in
disciplinary action.
11. A home improvement contractor includes which of the
following?
A. Road paving
B. Roofing and remodeling
