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. Under Maryland law, who is required to hold an MHIC license before performing home improvement work?

    Answer: Any contractor performing home improvement work valued at $500 or more in labor and materials

    Maryland law requires any person or company contracting for home improvement work where the total cost of labor and materials is $500 or more to hold a valid MHIC license. The $500 threshold applies per project and covers anyone who solicits, bids, or performs such work directly with a homeowner.

  2. What is the minimum surety bond amount required for an MHIC license applicant?

    Answer: $20,000

    MHIC applicants must furnish a surety bond of at least $20,000 as part of the licensing requirements. The bond protects consumers from financial loss due to contractor default or violations of Maryland home improvement law.

  3. How long is an MHIC license valid before it must be renewed?

    Answer: 2 years

    MHIC licenses are issued for a two-year period. Before expiration, contractors must submit a renewal application, pay the renewal fee, maintain a valid surety bond, and complete any required continuing education to keep their license active.

  4. Which Maryland state agency issues and enforces MHIC licenses?

    Answer: Maryland Home Improvement Commission (MHIC)

    The Maryland Home Improvement Commission (MHIC) is the state agency responsible for licensing home improvement contractors, investigating consumer complaints, and enforcing the Maryland Home Improvement Law.

  5. What is the consequence if an MHIC licensee's required surety bond lapses or is cancelled during the license period?

    Answer: The license is automatically suspended until a replacement bond is filed

    If the required surety bond lapses or is cancelled, the contractor's MHIC license is automatically suspended. The contractor cannot legally perform home improvement work until a new bond is filed with the Commission and the suspension is lifted.

  6. Which of the following individuals is EXEMPT from obtaining an MHIC license in Maryland?

    Answer: A homeowner personally performing improvements on their own primary residence

    Maryland's Home Improvement Law exempts homeowners who personally perform improvements on a residence they own and occupy as their primary home. Licensed tradespeople (electricians, plumbers, HVAC) working within the scope of their own license are also exempt, as are new construction contractors.