Maryland Home Improvement (MHIC) Exam — All Questions
5 questions
As of the current requirement (effective June 1, 2024), what minimum general liability insurance must an MHIC contractor carry?
- a.$50,000
- b.$500,000✓
- c.$100,000
- d.No liability insurance is required
Effective June 1, 2024, Bus. Reg. §8-302.1 requires MHIC home-improvement contractors to carry at least $500,000 in general liability insurance. An older $50,000 figure is superseded — the current minimum is $500,000.Md. Bus. Reg. §8-302.1 (eff. June 1, 2024)
An applicant cannot meet the MHIC's financial-solvency guidelines from assets alone. What alternative does Maryland allow?
- a.The applicant is permanently barred from licensure
- b.The applicant may skip the requirement by paying a double fee
- c.The applicant may purchase a surety bond or obtain a qualified indemnitor✓
- d.The applicant must incorporate out of state
An applicant who does not meet the solvency guidelines is not automatically denied — Maryland allows the applicant to purchase a surety bond or obtain a qualified indemnitor to backstop the license, protecting homeowners against the risk of a financially weaker contractor.MHIC financial-solvency requirement
What does the MHIC review to assess an applicant's financial responsibility?
- a.Total assets, liabilities, net worth, and a full credit report✓
- b.Only the applicant's high-school transcript
- c.The applicant's vehicle registration
- d.Nothing — finances are not reviewed
The MHIC evaluates financial responsibility using the applicant's total assets, liabilities, net worth, and a full credit report. Applicants who fall short may post a surety bond or use an indemnitor. These checks, plus the Guaranty Fund, protect homeowners who depend on the contractor's solvency.MHIC financial-responsibility review
A candidate passes the MHIC exam but delays applying. What happens to the passing score?
- a.It never expires
- b.It expires after 30 days
- c.It converts automatically into a license
- d.It must be used to apply within two years, or it expires and the exam must be retaken✓
A passing MHIC score is valid for two years; if the candidate does not apply for licensure within that window, the score expires and the exam must be retaken. A failed candidate must wait 30 days to retake (60 days for subsequent attempts).MHIC exam validity / retake policy
Which reference is the MHIC contractor exam based on?
- a.The NASCLA Accredited Commercial General Building Contractor manual
- b.The 5th edition of the Contractors Guide to Business, Law and Project Management✓
- c.The International Building Code, current edition
- d.The Maryland Driver's Manual
The MHIC Contractor exam is based on the 5th edition of the Contractors Guide to Business, Law and Project Management and tests the laws and regulations for operating a home-improvement business. Studying that guide with the Maryland Home Improvement Law (Title 8) is the recommended preparation.MHIC Contractor Examination reference