MHIC MD Home Improvement Law 4

Question 1

Under Maryland law, what is the maximum civil penalty the MHIC can impose on an unlicensed contractor per violation?

Accepted Answer

$5,000

Answer

The MHIC may impose a civil penalty of up to $5,000 per violation on unlicensed contractors.

Question 2

A homeowner pays a contractor $2,500 upfront for a $5,000 job, but the contractor never starts. The homeowner files a claim with the Guaranty Fund. What is the maximum the Fund will pay per claimant?

Accepted Answer

$15,000

Answer

The Maryland Home Improvement Guaranty Fund pays up to $15,000 per claimant for losses due to contractor misconduct.

Question 3

Which of the following actions triggers automatic suspension of an MHIC license?

Accepted Answer

Conviction of a felony involving moral turpitude

Answer

A felony conviction involving moral turpitude is grounds for automatic license suspension under Maryland law.

Question 4

Under Maryland's Home Improvement Law, a contractor must provide a written contract for any job costing more than:

Accepted Answer

$250

Answer

Maryland law requires a written contract for any home improvement job with a total price exceeding $250.

Question 5

A contractor wants to advertise home improvement services in Maryland. Which statement about advertising is correct?

Accepted Answer

The MHIC license number must appear in all advertisements

Answer

Maryland requires that an MHIC licensee include their license number in all advertisements for home improvement services.

(MHIC) Maryland Home Improvement Contractor Practice Test

(MHIC) Maryland Home Improvement Contractor Practice Test

MHIC MD Home Improvement Law 4