Licensing Exam Practice Test 100 Questions

Maryland Home Improvement Contractor Licensing Exam Practice Test 100 Questions And Correct Answers (Verified Answers) Plus Rationales 2026 Q&A | Instant Download Pdf

• What Maryland state agency issues the Home Improvement

Contractor license?

• Maryland Department of Labor, Licensing & Regulation (DLLR)
• Maryland State Police
• Maryland Department of Commerce
• Department of Energy
• Maryland Department of Labor, Licensing & Regulation (DLLR)

Rationale: DLLR, under the Maryland Home Improvement

Commission (MHIC), regulates home improvement contractors.

• The primary purpose of the Maryland Home Improvement

Commission (MHIC) is to:

• Provide insurance assistance 1 / 4

• Regulate and license home improvement work
• Issue business tax IDs
• Conduct building inspections only
• Regulate and license home improvement work

Rationale: MHIC oversees licensing, enforcement, and consumer

protection.

3. A home improvement contract must be in writing when:

• Over $50
• Over $250
• Over $500
• Any amount
• Any amount

Rationale: Maryland law requires written contracts for all home

improvement work.

4. A contractor must report a change of business address to MHIC within:

• 7 days
• 30 days
• 90 days
• 120 days
• 30 days

Rationale: Regulations require timely notification of address changes

for licensing accuracy. 2 / 4

5. The MHIC Guaranty Fund exists to:

• Pay contractors for lost revenue
• Pay consumers for damages
• Cover contractor liability insurance
• Cover employees’ wages
• Pay consumers for damages

Rationale: The fund compensates homeowners harmed by licensed

contractors’ actions.

• The minimum age to obtain a Home Improvement Contractor license

is:

• 16
• 18
• 21
• 25
• 18

Rationale: Legal adulthood is required for licensing contracts.

• Which document ensures a contractor will follow laws and

regulations?

• Liability insurance
• Surety bond
• Workers’ compensation
• Bid proposal 3 / 4

• Surety bond

Rationale: A bond guarantees compliance and protects consumers.

• Which is required to apply for MHIC licensing?
• Proof of U.S. citizenship
• Credit report and financial solvency
• Engineering degree
• Building inspector certificate
• Credit report and financial solvency

Rationale: Applicants must show financial responsibility to protect

consumers.

• How long is an MHIC license valid?
• 1 year
• 2 years
• 3 years
• 4 years
• 2 years

Rationale: Licenses must be renewed biennially.

• Which happens if a contractor operates without a license?
• No legal consequences
• Civil and criminal penalties
• Only a warning
• Automatic approval for future license
• Civil and criminal penalties
• / 4