Virginia Home Improvement Contractor (HIC) Exam
250 Practice MCQs — Newest Actual Exam Preparation
1. Which Virginia state agency regulates Home Improvement Contractors?
A) Virginia Department of Health
B) Virginia Department of Professional and Occupational Regulation (DPOR) (correct
answer)
C) Virginia Department of Labor and Industry
D) Virginia State Corporation Commission
Rationale: The Virginia Department of Professional and Occupational Regulation (DPOR) is the
state agency responsible for licensing and regulating Home Improvement Contractors through
the Board for Contractors. All HIC applications, renewals, and enforcement actions are handled
through DPOR.
2. What Virginia law governs the Home Improvement Contractor license?
A) Virginia Consumer Protection Act only
B) Virginia Contractor Transaction Recovery Act
C) Virginia Code Title 54.1, which establishes the Board for Contractors and licensing
requirements (correct answer)
D) Virginia Uniform Statewide Building Code
Rationale: Virginia Code Title 54.1 establishes the Board for Contractors, defines contractor
licensing classes, and sets out the requirements and regulations governing Home Improvement
Contractors in Virginia.
3. What is the definition of a "Home Improvement Contractor" (HIC) in Virginia?
A) Any person who builds new residential homes
B) A contractor who performs improvements on existing residential structures for
compensation (correct answer)
C) A contractor who only installs HVAC systems
D) A contractor who manages apartment building maintenance
,Rationale: A Virginia HIC is a contractor who performs improvements, repairs, remodeling, or
other work on existing residential structures — including single-family homes, duplexes, and
other residential properties — for compensation.
4. Which of the following projects requires a Virginia HIC license?
A) Building a new single-family home
B) Remodeling a kitchen in an existing home for $3,000 (correct answer)
C) Performing electrical work only under a specialty license
D) Maintaining commercial office buildings
Rationale: Remodeling an existing residential structure for compensation requires a Virginia
HIC license. New construction requires a different class of contractor license; commercial work
and specialty-only work have different requirements.
5. What is the minimum financial responsibility requirement for a Class C HIC license in
Virginia?
A) No financial responsibility required
B) Net worth or working capital of at least $15,000 (correct answer)
C) Net worth or working capital of at least $45,000
D) A surety bond of $100,000
Rationale: Virginia Class C contractors (including HICs) must demonstrate a net worth or
working capital of at least $15,000. This financial responsibility requirement ensures contractors
have the resources to complete projects and meet obligations.
6. What is the financial responsibility requirement for a Class B HIC license?
A) $15,000 net worth or working capital
B) $45,000 net worth or working capital (correct answer)
C) $150,000 net worth or working capital
D) No financial requirement for Class B
Rationale: Class B contractors must demonstrate a net worth or working capital of at least
$45,000. Class B HICs may perform projects up to $120,000 per contract and up to $750,000
annually.
,7. What is the financial responsibility requirement for a Class A HIC license?
A) $45,000 net worth or working capital
B) $150,000 net worth or working capital (correct answer)
C) $500,000 net worth or working capital
D) $75,000 net worth or working capital
Rationale: Class A contractors must demonstrate a net worth or working capital of at least
$150,000. Class A HICs may perform projects of any dollar value, including the largest
residential improvement contracts.
8. What are the contract value limits for a Class C HIC?
A) Up to $10,000 per job, unlimited annually
B) Up to $10,000 per contract and no more than $150,000 in total annual gross volume
(correct answer)
C) Up to $50,000 per contract
D) No contract limits for Class C
Rationale: Class C HICs are limited to contracts of $10,000 or less per job and a total annual
gross volume of $150,000 or less. Exceeding these limits requires upgrading to a Class B or
Class A license.
9. What are the contract value limits for a Class B HIC?
A) Up to $7,500 per contract
B) Up to $120,000 per contract and no more than $750,000 in total annual gross volume
(correct answer)
C) Up to $500,000 per contract
D) No contract limits for Class B
Rationale: Class B HICs may perform contracts up to $120,000 per job and up to $750,000 in
total annual gross volume. Projects or annual volumes exceeding these limits require a Class A
license.
10. A Class A HIC has what project size limitations?
A) Up to $500,000 per contract
B) Up to $1,000,000 annually
C) No limitations on project size or annual volume (correct answer)
, D) Up to $750,000 annually
Rationale: Class A contractors have no limitations on individual contract size or annual gross
volume. They are authorized to perform projects of any value, making this the highest class of
Virginia contractor license.
11. How long is a Virginia HIC license valid before renewal?
A) One year
B) Two years (correct answer)
C) Three years
D) Five years
Rationale: Virginia HIC licenses are issued for a two-year period. License holders must renew
before the expiration date to maintain an active license and the legal right to perform home
improvement work for compensation.
12. What is required of every Virginia HIC license applicant regarding a "qualified individual"?
A) A qualified individual is optional for sole proprietors
B) Every licensed HIC must have a Qualified Individual (QI) who has passed the
required examination and is responsible for the firm's contracting activities (correct
answer)
C) A qualified individual is only required for Class A licenses
D) A qualified individual must be a licensed professional engineer
Rationale: Virginia law requires every HIC firm to designate a Qualified Individual (QI) who
has demonstrated competence by passing the required examination. The QI is responsible for
ensuring the firm's work complies with applicable laws and standards.
13. What happens to a HIC firm's license if the Qualified Individual leaves the company?
A) The license remains active for 12 months without a QI
B) The firm must notify DPOR and designate a new QI within 90 days or the license may
be suspended (correct answer)
C) The license is automatically revoked
D) Any employee can serve as QI without examination
250 Practice MCQs — Newest Actual Exam Preparation
1. Which Virginia state agency regulates Home Improvement Contractors?
A) Virginia Department of Health
B) Virginia Department of Professional and Occupational Regulation (DPOR) (correct
answer)
C) Virginia Department of Labor and Industry
D) Virginia State Corporation Commission
Rationale: The Virginia Department of Professional and Occupational Regulation (DPOR) is the
state agency responsible for licensing and regulating Home Improvement Contractors through
the Board for Contractors. All HIC applications, renewals, and enforcement actions are handled
through DPOR.
2. What Virginia law governs the Home Improvement Contractor license?
A) Virginia Consumer Protection Act only
B) Virginia Contractor Transaction Recovery Act
C) Virginia Code Title 54.1, which establishes the Board for Contractors and licensing
requirements (correct answer)
D) Virginia Uniform Statewide Building Code
Rationale: Virginia Code Title 54.1 establishes the Board for Contractors, defines contractor
licensing classes, and sets out the requirements and regulations governing Home Improvement
Contractors in Virginia.
3. What is the definition of a "Home Improvement Contractor" (HIC) in Virginia?
A) Any person who builds new residential homes
B) A contractor who performs improvements on existing residential structures for
compensation (correct answer)
C) A contractor who only installs HVAC systems
D) A contractor who manages apartment building maintenance
,Rationale: A Virginia HIC is a contractor who performs improvements, repairs, remodeling, or
other work on existing residential structures — including single-family homes, duplexes, and
other residential properties — for compensation.
4. Which of the following projects requires a Virginia HIC license?
A) Building a new single-family home
B) Remodeling a kitchen in an existing home for $3,000 (correct answer)
C) Performing electrical work only under a specialty license
D) Maintaining commercial office buildings
Rationale: Remodeling an existing residential structure for compensation requires a Virginia
HIC license. New construction requires a different class of contractor license; commercial work
and specialty-only work have different requirements.
5. What is the minimum financial responsibility requirement for a Class C HIC license in
Virginia?
A) No financial responsibility required
B) Net worth or working capital of at least $15,000 (correct answer)
C) Net worth or working capital of at least $45,000
D) A surety bond of $100,000
Rationale: Virginia Class C contractors (including HICs) must demonstrate a net worth or
working capital of at least $15,000. This financial responsibility requirement ensures contractors
have the resources to complete projects and meet obligations.
6. What is the financial responsibility requirement for a Class B HIC license?
A) $15,000 net worth or working capital
B) $45,000 net worth or working capital (correct answer)
C) $150,000 net worth or working capital
D) No financial requirement for Class B
Rationale: Class B contractors must demonstrate a net worth or working capital of at least
$45,000. Class B HICs may perform projects up to $120,000 per contract and up to $750,000
annually.
,7. What is the financial responsibility requirement for a Class A HIC license?
A) $45,000 net worth or working capital
B) $150,000 net worth or working capital (correct answer)
C) $500,000 net worth or working capital
D) $75,000 net worth or working capital
Rationale: Class A contractors must demonstrate a net worth or working capital of at least
$150,000. Class A HICs may perform projects of any dollar value, including the largest
residential improvement contracts.
8. What are the contract value limits for a Class C HIC?
A) Up to $10,000 per job, unlimited annually
B) Up to $10,000 per contract and no more than $150,000 in total annual gross volume
(correct answer)
C) Up to $50,000 per contract
D) No contract limits for Class C
Rationale: Class C HICs are limited to contracts of $10,000 or less per job and a total annual
gross volume of $150,000 or less. Exceeding these limits requires upgrading to a Class B or
Class A license.
9. What are the contract value limits for a Class B HIC?
A) Up to $7,500 per contract
B) Up to $120,000 per contract and no more than $750,000 in total annual gross volume
(correct answer)
C) Up to $500,000 per contract
D) No contract limits for Class B
Rationale: Class B HICs may perform contracts up to $120,000 per job and up to $750,000 in
total annual gross volume. Projects or annual volumes exceeding these limits require a Class A
license.
10. A Class A HIC has what project size limitations?
A) Up to $500,000 per contract
B) Up to $1,000,000 annually
C) No limitations on project size or annual volume (correct answer)
, D) Up to $750,000 annually
Rationale: Class A contractors have no limitations on individual contract size or annual gross
volume. They are authorized to perform projects of any value, making this the highest class of
Virginia contractor license.
11. How long is a Virginia HIC license valid before renewal?
A) One year
B) Two years (correct answer)
C) Three years
D) Five years
Rationale: Virginia HIC licenses are issued for a two-year period. License holders must renew
before the expiration date to maintain an active license and the legal right to perform home
improvement work for compensation.
12. What is required of every Virginia HIC license applicant regarding a "qualified individual"?
A) A qualified individual is optional for sole proprietors
B) Every licensed HIC must have a Qualified Individual (QI) who has passed the
required examination and is responsible for the firm's contracting activities (correct
answer)
C) A qualified individual is only required for Class A licenses
D) A qualified individual must be a licensed professional engineer
Rationale: Virginia law requires every HIC firm to designate a Qualified Individual (QI) who
has demonstrated competence by passing the required examination. The QI is responsible for
ensuring the firm's work complies with applicable laws and standards.
13. What happens to a HIC firm's license if the Qualified Individual leaves the company?
A) The license remains active for 12 months without a QI
B) The firm must notify DPOR and designate a new QI within 90 days or the license may
be suspended (correct answer)
C) The license is automatically revoked
D) Any employee can serve as QI without examination
