MHIC NASCLA CONTRACTORS EXAM REVIEW (Latest 2025 / 2026 Update) Questions and Verified Answers | 100% Correct | Grade A+

MHIC NASCLA CONTRACTORS EXAM REVIEW (Latest 2025 / 2026 Update) Questions and Verified Answers | 100% Correct | Grade A+ How long does a claimant have to bring a claim against the guaranty fund? - ANSWER 3 years from discovery of the loss or damage How many days does a contractor have to respond in writing to the copy of claim that was sent by the commission? - ANSWER 10 days Advertising must be done in a way as to avoid misrepresentating the product, service or Terms of sale so as not to deceive the customer. - ANSWER True An applicant must provide to the commission, a credit report with their application. - ANSWER True How many days does a contractor have to respond to a receipt of a claim from commission? - ANSWER 10 days How many members are there in the Maryland home improvement commission? - ANSWER 9 members Of the 9 members on the commission , how many are experienced in home improvement ? - ANSWER 4 member If within ________ after the commission gives notice , a contractor on whose amount a claim was paid does not reimburse the fund in full, the commission may sue the contractor for reimbursement. - ANSWER 60 days In addtion to full reimbursement of the fund, a contractor is responsible to pay at least _________interest on the amount to reimburse. - ANSWER 10 % The state can record a lien against any real property owners by the contractor for a debt owed to the fund - ANSWER True If the commission pays a claim from the fund base on the actions or omissions of a contractor, the commission may suspend the contractors license until full reimbursement of the fund plus at least 10%interest - ANSWER True A home improvement contract in compliance with the home improvement laws would include all of the following except - ANSWER Names and license numbers of subcontractors A salesperson may not represent 2 contractors at the same time for the same project. - ANSWER True Can a sales person legally accept money for themselves from the customer - ANSWER No It is against the law for building and permits departments to issue a permit to contractor without the contractors license number. - ANSWER True If a contractor fails to correct violation of the building code within reasonable time period, the county or municipality inspecting the project shall notify the commission - ANSWER True What is the maximum fine for contracting without a license-second offense - ANSWER $5,000 and/or 2 years in jail or both Contractor, jack smith, is not getting along with hector jones , his customer. If he decides not to complete the contract, has jack broken any laws? - ANSWER Yes Can a contractor decide to use material other than specified in the contract documents without getting permission from the owner? - ANSWER No Contractors may not : - ANSWER Lie on their license application Make false promises Misrepresent their service or product Contractor, jack brown, makes a deal with customer, ameal cougar , to provide an estimate of $40,000 on project where the actual cost are $30,000,allowing ameal to pocket $10,000 after securing a mortgage at $40,000 and paying off jack this is : - ANSWER Fraud An illegal act A misdemeanor All of the about If a contractor sells personstoos selling or working with the contractor for any reason, the contractor has a responsibility to the state to inform the commission? - ANSWER True All advertising has to provide the identifier "Maryland home improvement commission license no___________"or "MHIC - ANSWER True What is the maximum penalty the commission may impose upon a contractor, licensed or unlicensed , per violation of these laws - ANSWER $5,000 Yes - ANSWER Does home improvement include work done on an individual condominium unit? Yes - ANSWER Does home improvement include work done on a swimming pool? Yes - ANSWER Does a home improvement contract HAVE to be in writing in order to preserve your lien rights? Subcontractors - ANSWER Contractors who can only contract with a contractor or a subcontractor are: Cannot - ANSWER A county or municipality in Maryland _____________ require a contractor to get authorization from an official in that city to be able to contract in that municipality. Can - ANSWER A county or municipality in Maryland _______________ regulate the character, performance and quality of home improvement. 7 - ANSWER How many members are there in the Maryland Home Improvement Commission? 3 - ANSWER Of the 7 members on the Commission, how many are experienced in home improvement? 4 Years - ANSWER What is the term of a member on the Commission? Associated Answers 5 years - ANSWER How long must a person be a citizen and member of Maryland before they can be appointed to the Commission? True - ANSWER It is illegal for a member of the Commission to receive any compensation from a person regulated by the Commission. 12 times a year - ANSWER How often does the Commission hold meetings at a minimum? Executive Director - ANSWER The _______________ is a full time employee of the State. the Director of the Commission - ANSWER People hired to investigate complaints about home improvement projects work under: 1. injunctive relief against the conduct 2. an order for satisfactory completion 3. restitution - ANSWER If the Commission decides to sue a contractor because they believe that the contractor has or will cause harm to another person, they can sue for: yes - ANSWER Can the Commission request financial records at any time? yes - ANSWER Must a contractor, sub-contractor, or salesperson who places their license on inactive status pay a fee to renew an inactive license? yes - ANSWER Can the Commission take disciplinary action against an inactive license? 10 days - ANSWER How many days does a licensee have to notify the Commission of change in control in ownership, management, address or trade name? 2 - ANSWER How many contractors may a salesperson represent? both a and b - ANSWER The following are exempt from licensure requirements: Associated Answers 1 employees for labor services 2 employees for clerical work 3 Salespersons 4 both a and b $50,000 - ANSWER What is the minimum amount of liability insurance needed? true - ANSWER An applicant for licensure must have 2 years trade experience or comparable educational training. $250 - ANSWER What is the cost of the initial application fee for a home improvement contractors' license?