MHIC Basic 5

Question 1

How long must a Maryland home improvement contractor retain copies of all contracts and related documents after project completion?

Accepted Answer

3 years

Answer

MHIC regulations require contractors to keep project records for at least three years following completion.

Question 2

A homeowner signs an MHIC contract at their residence during a home visit. Under Maryland's Home Improvement Law, how many days does the homeowner have to cancel the contract?

Accepted Answer

3 business days

Answer

Maryland follows the FTC three-business-day cooling-off rule for contracts solicited at the consumer's home.

Question 3

Which of the following must be included in every MHIC-required home improvement contract?

Accepted Answer

The contractor's MHIC license number

Answer

Maryland law mandates that the contractor's MHIC license number appear on every home improvement contract.

Question 4

What is the primary purpose of the Maryland Home Improvement Guaranty Fund?

Accepted Answer

To compensate homeowners harmed by licensed contractors who cannot pay judgments

Answer

The Guaranty Fund provides a financial safety net for homeowners who obtain a judgment against a contractor that is unable to pay.

Question 5

An MHIC licensee subcontracts electrical work to an unlicensed electrician. Under Maryland law, the primary contractor is:

Accepted Answer

Responsible and may face license discipline

Answer

The primary MHIC licensee remains responsible for ensuring all subcontractors meet required licensing standards.

(MHIC) Maryland Home Improvement Contractor Practice Test

(MHIC) Maryland Home Improvement Contractor Practice Test

MHIC Basic 5