Practice Test Geeks(MHIC) Maryland Home Improvement Contractor Practice Test
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Business and Labor Practices Flashcards

7 cards from real MHIC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Business and Labor Practices flashcards as text

  1. Under Maryland's Home Improvement Law, what must happen if a contractor wants to make a material change to the scope of work after the contract is signed?

    Answer: A written change order signed by both parties is required

    Maryland law requires that any material changes to the original scope of work be documented in a signed written change order.

  2. Which of the following workers is typically classified as an independent contractor rather than an employee for Maryland payroll tax purposes?

    Answer: A skilled plumber who sets their own hours and provides their own equipment

    A worker who controls their own schedule and supplies their own tools generally meets the criteria for independent contractor status.

  3. What is the primary purpose of Maryland's Guaranty Fund administered by the MHIC?

    Answer: To compensate homeowners harmed by licensed contractors who cannot pay judgments

    The MHIC Guaranty Fund compensates eligible homeowners when a licensed contractor fails to honor a court judgment against them.

  4. How soon after starting business must a new MHIC licensee notify the Commission of their business address?

    Answer: Within 30 days

    Licensees must notify MHIC of their current business address within 30 days of any change.

  5. A Maryland contractor employs three full-time workers. Under Maryland law, which insurance coverage is mandatory?

    Answer: Workers' compensation insurance

    Maryland requires employers with one or more employees to carry workers' compensation insurance.

  6. Which of the following contract provisions is PROHIBITED under Maryland's Home Improvement Law?

    Answer: A clause that waives the homeowner's right to cancel within the rescission period

    Maryland law grants homeowners a right of rescission, and any contract clause waiving that right is prohibited and unenforceable.

  7. A contractor operating under a trade name in Maryland must ensure which of the following is true?

    Answer: The trade name must be registered and the MHIC license must be obtained in the trade name or cross-referenced

    Contractors using a trade (DBA) name must register it and ensure their MHIC license properly reflects or cross-references that name.

How this page was made: written with AI tools and published by Nathan Beja, founder of Practice Test Geeks, who is responsible for its content. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy

Sources & references

Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy

  1. dsd.maryland.gov — Fees · verified Oct 2026
  2. labor.maryland.gov — Renewal, test delivery, eligibility, fees, exam format, passing score, registration, retake policy, score validity · verified Oct 2026