Practice Test Geeks(MHIC) Maryland Home Improvement Contractor Practice Test
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Licensing 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 Licensing flashcards as text

  1. The MHIC Guaranty Fund is funded primarily by:

    Answer: Fees paid by licensed contractors

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

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

    Answer: Request a hearing before the MHIC Commission

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

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

    Answer: Both an MHIC license and a separate specialty trade license

    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.

  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?

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

    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.

  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)?

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

    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.

  6. A consumer files a complaint with MHIC against a licensed contractor. What is the typical first step in MHIC's complaint process?

    Answer: MHIC investigates the complaint and may contact both parties for information

    When MHIC receives a consumer complaint, it typically begins an investigation, which may include contacting both the consumer and the contractor to gather information about the dispute.