Practice Test Geeks(MHIC) Maryland Home Improvement Contractor Practice Test
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Basic Flashcards

6 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 6 Basic flashcards as text

  1. Under Maryland law, when a consumer suffers a loss due to fraud by a licensed MHIC contractor, which of the following remedies is available?

    Answer: Filing a claim with the MHIC Guaranty Fund after obtaining a judgment against the contractor

    To access the MHIC Guaranty Fund, a consumer must first obtain a judgment against the contractor and then apply to the fund for compensation up to the $20,000 limit.

  2. A home improvement contractor in Maryland accepts a job for $800. Does this contract need to be in writing?

    Answer: Yes — all home improvement contracts must be in writing in Maryland

    Maryland Home Improvement Law requires all home improvement contracts to be in writing, regardless of the dollar amount. There is no small-dollar exemption.

  3. What does it mean for a consumer when a Maryland contractor is 'bonded'?

    Answer: A surety bond provides financial protection if the contractor fails to complete work or pay obligations

    Being 'bonded' means the contractor has purchased a surety bond, which provides financial protection to consumers and subcontractors if the contractor fails to perform contractual obligations.

  4. Which of the following accurately describes the MHIC license examination?

    Answer: It covers Maryland Home Improvement Law, business practices, and general contracting knowledge

    The MHIC examination covers Maryland Home Improvement Law, business practices, contract requirements, lien law, and general knowledge relevant to home improvement contracting.

  5. A Maryland home improvement contractor's MHIC license expires while they are actively working on a project. What should they do?

    Answer: Immediately stop work, renew the license, and then resume

    Working without a valid MHIC license — even on a project started under a valid license — is a violation of Maryland law. The contractor must stop work and renew before continuing.

  6. In Maryland, which of the following is TRUE about the homeowner's right to a copy of the signed home improvement contract?

    Answer: The homeowner is entitled to a copy of the signed contract at the time of signing

    Maryland Home Improvement Law requires the contractor to give the homeowner a copy of the fully executed (signed) contract at the time of signing.