Virginia HIC Exam 2025 – Home Improvement Contractor Test Bank with 100+ Verified Questions, Correct Answers, and Rationales

VIRGINIA HIC EXAM (HOME IMPROVEMENT EXAM) NEWEST
ACTUAL EXAM

Question 1
In Virginia, which state agency is primarily responsible for the licensing and regulation of
contractors, including Home Improvement Contractors?
A) Virginia Department of Professional and Occupational Regulation (DPOR)
B) Virginia Department of Housing and Community Development (DHCD)
C) Virginia Department of Commerce and Trade (DCT)
D) Virginia State Corporation Commission (SCC)
E) Virginia Department of Labor and Industry (DOLI)
Correct Answer: A) Virginia Department of Professional and Occupational
Regulation (DPOR)
Rationale: The DPOR, specifically through the Board for Contractors, is the
governing body for contractor licensing and regulation in Virginia.

Question 2
A Class C Home Improvement Contractor in Virginia is generally limited to individual contracts
not exceeding what monetary value?
A) $1,000
B) $2,500
C) $10,000
D) $25,000
E) $120,000
Correct Answer: B) $2,500
Rationale: In Virginia, a Class C contractor is typically limited to single contracts up
to $2,500, with an aggregate total for a 12-month period not exceeding $25,000.

Question 3
Which of the following activities requires a contractor's license in Virginia?
A) A homeowner doing work on their own primary residence.
B) A person performing work valued at less than $1,000 as a single contract.
C) An individual performing landscaping services without construction.
D) A business constructing a new addition to a residential home with a contract value of
$15,000.

,E) A handyman performing minor repairs valued at $300.
Correct Answer: D) A business constructing a new addition to a residential home
with a contract value of $15,000.
Rationale: The contract value of

15,000exceedstheClassCsinglecontractlimit(15,000exceedstheClassCsinglecontractlim
it(

2,500) and the Class B single contract limit ($10,000), therefore requiring at least a
Class B license. Work under $1,000 and owner-occupied work may be exempt.

Question 4
A written contract for home improvement work in Virginia is legally required for projects
exceeding what monetary value?
A) $500
B) $1,000
C) $2,500
D) $5,000
E) $10,000
Correct Answer: B) $1,000
Rationale: Virginia law mandates that all agreements between a contractor and a
customer for home improvement services exceeding $1,000 must be in writing.

Question 5
Which of the following is considered a "prohibited act" for a licensed contractor in Virginia?
A) Providing a written estimate for work.
B) Completing work according to the contract.
C) Abandoning a project without legal excuse or prior consent of the owner.
D) Obtaining necessary permits.
E) Maintaining proper insurance.
Correct Answer: C) Abandoning a project without legal excuse or prior consent of
the owner.

,Rationale: Project abandonment is a serious violation of contractor regulations and
can lead to disciplinary action by the Board for Contractors.

Question 6
A contractor performing home improvement work in Virginia must have general liability
insurance with a minimum coverage amount per occurrence of:
A) $50,000
B) $100,000
C) $300,000
D) $500,000
E) $1,000,000
Correct Answer: D) $500,000
Rationale: While insurance requirements can vary, Virginia typically requires Class
A and B contractors to carry at least $500,000 in general liability insurance per
occurrence.

Question 7
The Virginia Contractor Transaction Recovery Fund is established to:
A) Provide loans to new contractors.
B) Reimburse eligible consumers who have suffered financial losses due to the improper or
dishonest conduct of a licensed contractor.
C) Fund contractor training programs.
D) Pay for contractor legal fees.
E) Cover uninsured contractor expenses.
Correct Answer: B) Reimburse eligible consumers who have suffered financial
losses due to the improper or dishonest conduct of a licensed contractor.
Rationale: The Recovery Fund acts as a safety net for consumers, providing a
mechanism for compensation when a contractor's actions result in actual
monetary loss.

Question 8
When a contractor is required to obtain a building permit for a home improvement project,
who is primarily responsible for obtaining it?

, A) The homeowner.
B) The subcontractor.
C) The general contractor performing the work.
D) The material supplier.
E) The architect.
Correct Answer: C) The general contractor performing the work.
Rationale: Unless specifically agreed otherwise in the contract, the general
contractor is typically responsible for obtaining all necessary permits for the work
they perform.

Question 9
Which information is legally required to be included in a written home improvement contract
in Virginia?
A) The contractor's DPOR license number.
B) A detailed list of all materials to be purchased by the homeowner.
C) The contractor's preferred payment method.
D) The homeowner's previous project history.
E) The estimated start and completion dates.
Correct Answer: A) The contractor's DPOR license number.
Rationale: Virginia law requires the contractor's DPOR license number to be
prominently displayed on all contracts, proposals, and advertisements.

Question 10
A contractor receives a customer complaint regarding faulty workmanship. What is the BEST
initial action for the contractor to take?
A) Ignore the complaint, assuming it will go away.
B) Immediately deny all responsibility.
C) Respond promptly, investigate the complaint, and attempt to resolve it amicably.
D) Threaten legal action against the customer.
E) Advise the customer to contact DPOR directly.
Correct Answer: C) Respond promptly, investigate the complaint, and attempt to
resolve it amicably.