MARYLAND HOME IMPROVEMENT TEST
(NASCLA CONTRACTORS GUIDE MD 6TH
EDITION) 200+ QUESTIONS AND CORRECT
ANSWERS 2025-2026
,How many contractors can a salesperson represent? - ANSWER: 2 max, but may
only represent ONE at the time of sale.
What happens if a salesperson leaves a contractor's team? - ANSWER: The
contractor is responsible for notifying the commission
What are the provisions for advertising under home improvement law? - ANSWER:
1) Advertising must contain name, and MHIC license number regardless of
whether the advertisement is in print, radio or TV.
2) The advertisement cannot be false, deceptive or misleading
For example: if advertisement contains a price which does not include all costs of
items necessary for the proper function or appearance of the product, this must be
clearly stated. Likewise, any limitation to what will be supplied at the advertised
price shall be stated clearly next to the statement; if delivery or installation charges
ar extra, the advertisement shall disclose the fact.
Vehicles and MIHC - Where is the license number to be displayed? - ANSWER:
both sides of all vehicles
If an investigator determines that a violation may have occurred, what actions can
the Commission take? - ANSWER: The Commission may take disciplinary action
which may include reprimand, monetary fine or suspension or revocation of the
license.
,2|Page
True or False: An individual who holds a home improvement license as a
contractor is NOT required to obtain a construction license from the Circuit Courts
- ANSWER: True
How long are exams valid for? - ANSWER: 2 years
If a candidate fails the exam, how long must he/she wait before retaking it? -
ANSWER: 30 days the first time. After each subsequent failure a candidate must
wait 60 days.
What is the insurance requirement for contractor? - ANSWER: General Liability at
least $50,000
What is the Home Improvement Guaranty Fund? - ANSWER: One of the
Commissions most important function is to administer the Home Improvement
Guaranty Fund. The fund compensates homeowners for the actual loss caused by
the acts or omissions of a licensed contractor.
True or False: Is a homeowner hires an unlicensed contractor he/she is eligible to
collect money from the fund? - ANSWER: FALSE - if a homeowner hires an
unlicensed contractor, the homeowner will NOT be eligible to collect money from
the Fund.
What is Actual Loss? - ANSWER: Actual Loss means the cost to correct or
complete a home improvement that is inadequate, unworkmanlike or incomplete.
How much can homeowners recover? - ANSWER: Homeowners may recover up to
$20,000 per contract, though they are not eligible to recover more than the amount
, 3|Page
paid to the contractor against whom the claim is based. Certain costs like: legal
fees, interest, consequential damages are not covered by the Fund.
What is the penalty for acting as a contractor or salesperson without a license in
MD? - ANSWER: guilty individuals may be incarcerated for 6 months and fined
yup to $1000. For subsequent convictions 2 years in jail and up to $5000 fine.
When was mold remediation act established? - ANSWER: MD Mold Remediation
Act was established in 2008 to protect the public, improve indoor air quality, and
to promote professional standards.
What does the Mold remediation Act require? - ANSWER: Each company that
provides mold remediation services must be licensed, and each employee who
provides the service must be certified.
What is mold? - ANSWER: Mold means an organism of the class fungi that causes
disintegration of organic matter and produces spores, as well as the spores,
hyphae,, and mycotoxins that are produced by mold.
What is mold remediation? - ANSWER: Removal, cleaning, sanitizing, demolition,
or other treatment of mold or mod contaminated matter that was not intended to be
grown at that location.
What is the insurance requirements for mold remediation? - ANSWER: GL in the
amount of at leat $1,000,000
Is installing HVAC or AC system home improvement? - ANSWER: No
Is a building of a swimming pool, deck, pier or porch included in Home
Improvement? - ANSWER: Yes
(NASCLA CONTRACTORS GUIDE MD 6TH
EDITION) 200+ QUESTIONS AND CORRECT
ANSWERS 2025-2026
,How many contractors can a salesperson represent? - ANSWER: 2 max, but may
only represent ONE at the time of sale.
What happens if a salesperson leaves a contractor's team? - ANSWER: The
contractor is responsible for notifying the commission
What are the provisions for advertising under home improvement law? - ANSWER:
1) Advertising must contain name, and MHIC license number regardless of
whether the advertisement is in print, radio or TV.
2) The advertisement cannot be false, deceptive or misleading
For example: if advertisement contains a price which does not include all costs of
items necessary for the proper function or appearance of the product, this must be
clearly stated. Likewise, any limitation to what will be supplied at the advertised
price shall be stated clearly next to the statement; if delivery or installation charges
ar extra, the advertisement shall disclose the fact.
Vehicles and MIHC - Where is the license number to be displayed? - ANSWER:
both sides of all vehicles
If an investigator determines that a violation may have occurred, what actions can
the Commission take? - ANSWER: The Commission may take disciplinary action
which may include reprimand, monetary fine or suspension or revocation of the
license.
,2|Page
True or False: An individual who holds a home improvement license as a
contractor is NOT required to obtain a construction license from the Circuit Courts
- ANSWER: True
How long are exams valid for? - ANSWER: 2 years
If a candidate fails the exam, how long must he/she wait before retaking it? -
ANSWER: 30 days the first time. After each subsequent failure a candidate must
wait 60 days.
What is the insurance requirement for contractor? - ANSWER: General Liability at
least $50,000
What is the Home Improvement Guaranty Fund? - ANSWER: One of the
Commissions most important function is to administer the Home Improvement
Guaranty Fund. The fund compensates homeowners for the actual loss caused by
the acts or omissions of a licensed contractor.
True or False: Is a homeowner hires an unlicensed contractor he/she is eligible to
collect money from the fund? - ANSWER: FALSE - if a homeowner hires an
unlicensed contractor, the homeowner will NOT be eligible to collect money from
the Fund.
What is Actual Loss? - ANSWER: Actual Loss means the cost to correct or
complete a home improvement that is inadequate, unworkmanlike or incomplete.
How much can homeowners recover? - ANSWER: Homeowners may recover up to
$20,000 per contract, though they are not eligible to recover more than the amount
, 3|Page
paid to the contractor against whom the claim is based. Certain costs like: legal
fees, interest, consequential damages are not covered by the Fund.
What is the penalty for acting as a contractor or salesperson without a license in
MD? - ANSWER: guilty individuals may be incarcerated for 6 months and fined
yup to $1000. For subsequent convictions 2 years in jail and up to $5000 fine.
When was mold remediation act established? - ANSWER: MD Mold Remediation
Act was established in 2008 to protect the public, improve indoor air quality, and
to promote professional standards.
What does the Mold remediation Act require? - ANSWER: Each company that
provides mold remediation services must be licensed, and each employee who
provides the service must be certified.
What is mold? - ANSWER: Mold means an organism of the class fungi that causes
disintegration of organic matter and produces spores, as well as the spores,
hyphae,, and mycotoxins that are produced by mold.
What is mold remediation? - ANSWER: Removal, cleaning, sanitizing, demolition,
or other treatment of mold or mod contaminated matter that was not intended to be
grown at that location.
What is the insurance requirements for mold remediation? - ANSWER: GL in the
amount of at leat $1,000,000
Is installing HVAC or AC system home improvement? - ANSWER: No
Is a building of a swimming pool, deck, pier or porch included in Home
Improvement? - ANSWER: Yes
