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. A licensed MHIC salesperson's employer has their contractor license revoked by the Commission. What is the immediate effect on the salesperson's license?

    Answer: The salesperson's license automatically becomes inactive until they register with a new licensed contractor

    A salesperson's license is contingent on being employed by a licensed contractor. When the employing contractor's license is revoked or lapses, the salesperson's license automatically becomes inactive. The salesperson cannot legally solicit home improvement contracts until they register with and are employed by another licensed contractor.

  2. Under MHIC regulations, which of the following combinations of work would NOT require a contractor license, even if the total project value exceeds $500?

    Answer: Replacing all windows and exterior doors on a newly constructed home not yet occupied

    New construction that has not yet been occupied is explicitly excluded from the definition of 'home improvement' under MHIC law. Because the home has not been occupied, the work falls outside MHIC jurisdiction regardless of dollar amount. The other scenarios all involve existing occupied or rental residential structures and would require MHIC licensure.

  3. A licensed MHIC contractor wants to advertise on a digital platform using only a phone number and a logo, without displaying their license number. Under MHIC regulations, this advertisement is:

    Answer: A violation, because all advertisements must include the contractor's MHIC license number

    MHIC regulations require that a contractor's license number appear on all advertisements, regardless of medium — including digital, print, radio, and television. This requirement is not limited to contracts or vehicles. Omitting the license number from any form of advertising is a violation that can result in disciplinary action.

  4. An MHIC licensee's surety bond is drawn upon by the Commission to compensate a consumer for an unpaid judgment. The contractor's bond falls below the required minimum. What must the contractor do?

    Answer: Restore the bond to the full required amount within 30 days or the license will be suspended

    When a claim against a contractor's surety bond reduces it below the required $20,000 minimum, the contractor must restore the bond to its full required amount within 30 days. Failure to do so results in automatic license suspension. There is no grace period that allows continued operation during the cure window — restoration must happen first.

  5. A Maryland-licensed MHIC contractor holds a valid contractor's license in Virginia under a reciprocal agreement. A Virginia complaint results in disciplinary action, including a formal reprimand on their Virginia license. What action may Maryland's MHIC Commission take?

    Answer: Impose reciprocal discipline on the Maryland license based solely on the out-of-state disciplinary action

    Under MHIC law, a disciplinary action taken by another state's licensing authority is an independent grounds for discipline in Maryland. The Commission may impose reciprocal discipline without conducting a full hearing on the underlying merits — the existence of the out-of-state action is sufficient. This is a key enforcement mechanism that catches contractors who evade one state's oversight.

  6. A homeowner hires a licensed MHIC contractor to renovate a kitchen for $18,000. The contractor subcontracts the electrical work to an electrician who does not hold an MHIC license. Regarding MHIC requirements, which statement is most accurate?

    Answer: The prime contractor remains fully liable under MHIC, but the electrician is not required to hold an MHIC license if licensed by the applicable electrical board

    Subcontractors performing work within a licensed trade (such as electricians, plumbers, or HVAC technicians) are not required to separately hold an MHIC contractor license, provided they are properly licensed under their own trade board. The prime MHIC contractor bears regulatory responsibility for the entire project. The $500 threshold applies to the contractor–homeowner relationship, not subcontractor carve-outs.