MHIC Licensing 3

Question 1

The MHIC Guaranty Fund is funded primarily by:

Accepted Answer

Fees paid by licensed contractors

Answer

The MHIC Guaranty Fund is funded through fees paid by licensed MHIC contractors as part of their licensing and renewal fees.

Question 2

If an MHIC license application is denied, the applicant has the right to:

Accepted Answer

Request a hearing before the MHIC Commission

Answer

An applicant whose MHIC license is denied has the right to request a hearing before the MHIC Commission to contest the denial.

Question 3

A Maryland home improvement contractor working in a specialty trade area (e.g., HVAC, electrical, plumbing) may be required to hold:

Accepted Answer

Both an MHIC license and a separate specialty trade license

Answer

In Maryland, specialty trade work such as electrical, plumbing, and HVAC requires separate specialty licenses in addition to the MHIC license. These are regulated by separate licensing boards.

Question 4

An individual currently holds an MHIC license as a sole proprietor but wants to incorporate their business. What must they do regarding the MHIC license?

Accepted Answer

Apply for a new MHIC license in the name of the corporation

Answer

MHIC licenses are tied to the business entity and are not transferable. When a sole proprietor incorporates, the new corporation must apply for its own MHIC license.

Question 5

What is the consequence if an MHIC contractor performs work beyond the scope of their license (e.g., performing specialty work they are not licensed for)?

Accepted Answer

MHIC can discipline the contractor and the contractor may face additional penalties from the applicable specialty board

Answer

Performing work outside the scope of one's license can result in dual enforcement: MHIC can take disciplinary action, and the relevant specialty trade licensing board can also penalize the contractor.

(MHIC) Maryland Home Improvement Contractor Practice Test

(MHIC) Maryland Home Improvement Contractor Practice Test

MHIC Licensing 3