VIRGINIA HOME IMPROVEMENT CONTRCTOR
(HIC) EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS A NEW UPDATED
VERSION LATEST 2026-2027/VIRGINIA HIC
EXAM 2026 (CORRECT VERIFIED ANSWERS)
ALREADY GRADED A+
1. A contractor does not notify a change of address and so does not receive a
timely Notice of Renewal. Who is responsible?
• A) The Board for Contractors
• B) The US Postal Service
• C) The licensee Contractor
• D) The Department of Professional and Occupational Regulation
Rationale: Licensees are responsible for maintaining current contact information
with the Board. Failure to receive renewal notices due to an unreported address
change does not excuse the licensee from timely renewal requirements. The burden
is on the contractor to ensure their contact information is accurate.
2. What is the initial Recovery Fund Fee for Virginia contractors?
• A) $10
, • B) $25
• C) $50
• D) $100
Rationale: The initial Transaction Recovery Fund fee is $25, which is paid upon
initial licensure. This fund provides compensation to consumers who have suffered
financial losses due to a contractor's improper or dishonest conduct.
3. If a contractor earns more than what amount per year, does the contractor
require a Class A license?
• A) $500,000
• B) $750,000
• C) $750,000
• D) $1,000,000
Rationale: A Class A license is required for contractors whose total work in any
12-month period exceeds $750,000. This is the threshold established by Virginia
law for the highest class of contractor licensure.
4. What is the MAXIMUM penalty for a contractor who undertakes work
without the proper class of license?
• A) $250 fine per day
• B) $500 fine per day for each day of violation plus penalties for a
misdemeanor
• C) $1,000 fine per day
• D) License suspension only
Rationale: Contractors who perform work without the appropriate license class
face significant penalties, including a $500 fine per day of violation and potential
,misdemeanor charges. This demonstrates the serious consequences of operating
outside one's license classification.
5. What is the PRIMARY purpose of contractor licensing in Virginia?
• A) To increase state revenue
• B) To limit competition
• C) Protect the health and welfare of the public
• D) To standardize construction practices
Rationale: The fundamental purpose of contractor licensing is public protection.
Licensing ensures that contractors meet minimum competency standards, have
appropriate insurance, and can be held accountable for their work, thereby
safeguarding consumers from unqualified or dishonest practitioners.
6. A firm desiring to be licensed as a Class B contractor MUST have a
MINIMUM net worth of what amount?
• A) $5,000
• B) $10,000
• C) $15,000
• D) $25,000
Rationale: Class B contractors must demonstrate a minimum net worth of $15,000.
This financial requirement helps ensure that contractors have sufficient financial
resources to complete projects and meet their obligations.
7. How much is the Class A initial license fee?
• A) $100
• B) $200
, • C) $250
• D) $500
Rationale: The initial license fee for a Class A contractor license is $200. This fee
is paid upon application for licensure and covers the costs associated with
processing the application and issuing the license.
8. A licensee's name change MUST be reported to the Board within a
MAXIMUM of how many days?
• A) 15 days
• B) 30 days
• C) 45 days
• D) 60 days
Rationale: Licensees must report any name change to the Board within 30 days.
This requirement ensures that the Board's records remain current and that
communications reach the correct individual.
9. Contractors who are assessed a fee to support the Transaction Recovery
Fund MUST pay this fee within a MINIMUM of how many days from when
the assessment fee notice was mailed?
• A) 30 days
• B) 45 days
• C) 60 days
• D) 90 days
Rationale: When the Transaction Recovery Fund balance falls below $400,000,
contractors may be assessed a fee. This assessment must be paid within 45 days of
the notice being mailed to avoid penalties.
(HIC) EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS A NEW UPDATED
VERSION LATEST 2026-2027/VIRGINIA HIC
EXAM 2026 (CORRECT VERIFIED ANSWERS)
ALREADY GRADED A+
1. A contractor does not notify a change of address and so does not receive a
timely Notice of Renewal. Who is responsible?
• A) The Board for Contractors
• B) The US Postal Service
• C) The licensee Contractor
• D) The Department of Professional and Occupational Regulation
Rationale: Licensees are responsible for maintaining current contact information
with the Board. Failure to receive renewal notices due to an unreported address
change does not excuse the licensee from timely renewal requirements. The burden
is on the contractor to ensure their contact information is accurate.
2. What is the initial Recovery Fund Fee for Virginia contractors?
• A) $10
, • B) $25
• C) $50
• D) $100
Rationale: The initial Transaction Recovery Fund fee is $25, which is paid upon
initial licensure. This fund provides compensation to consumers who have suffered
financial losses due to a contractor's improper or dishonest conduct.
3. If a contractor earns more than what amount per year, does the contractor
require a Class A license?
• A) $500,000
• B) $750,000
• C) $750,000
• D) $1,000,000
Rationale: A Class A license is required for contractors whose total work in any
12-month period exceeds $750,000. This is the threshold established by Virginia
law for the highest class of contractor licensure.
4. What is the MAXIMUM penalty for a contractor who undertakes work
without the proper class of license?
• A) $250 fine per day
• B) $500 fine per day for each day of violation plus penalties for a
misdemeanor
• C) $1,000 fine per day
• D) License suspension only
Rationale: Contractors who perform work without the appropriate license class
face significant penalties, including a $500 fine per day of violation and potential
,misdemeanor charges. This demonstrates the serious consequences of operating
outside one's license classification.
5. What is the PRIMARY purpose of contractor licensing in Virginia?
• A) To increase state revenue
• B) To limit competition
• C) Protect the health and welfare of the public
• D) To standardize construction practices
Rationale: The fundamental purpose of contractor licensing is public protection.
Licensing ensures that contractors meet minimum competency standards, have
appropriate insurance, and can be held accountable for their work, thereby
safeguarding consumers from unqualified or dishonest practitioners.
6. A firm desiring to be licensed as a Class B contractor MUST have a
MINIMUM net worth of what amount?
• A) $5,000
• B) $10,000
• C) $15,000
• D) $25,000
Rationale: Class B contractors must demonstrate a minimum net worth of $15,000.
This financial requirement helps ensure that contractors have sufficient financial
resources to complete projects and meet their obligations.
7. How much is the Class A initial license fee?
• A) $100
• B) $200
, • C) $250
• D) $500
Rationale: The initial license fee for a Class A contractor license is $200. This fee
is paid upon application for licensure and covers the costs associated with
processing the application and issuing the license.
8. A licensee's name change MUST be reported to the Board within a
MAXIMUM of how many days?
• A) 15 days
• B) 30 days
• C) 45 days
• D) 60 days
Rationale: Licensees must report any name change to the Board within 30 days.
This requirement ensures that the Board's records remain current and that
communications reach the correct individual.
9. Contractors who are assessed a fee to support the Transaction Recovery
Fund MUST pay this fee within a MINIMUM of how many days from when
the assessment fee notice was mailed?
• A) 30 days
• B) 45 days
• C) 60 days
• D) 90 days
Rationale: When the Transaction Recovery Fund balance falls below $400,000,
contractors may be assessed a fee. This assessment must be paid within 45 days of
the notice being mailed to avoid penalties.
