New Jersey Home Improvement Contractor Exam
Practice Test | 200 Questions & Detailed Answers | NJ
HIC Licensing Registration & Consumer Protection | A+
Graded
Section 1: Registration & Licensing Requirements (Questions 140)
1. What is the primary purpose of the New Jersey Home Improvement Contractor Registration Act?
A) To regulate real estate agents
B) To protect consumers from fraud and poor workmanship
C) To increase construction taxes
D) To eliminate small contractors
Answer: B
Explanation: The law exists primarily to protect homeowners from dishonest or unqualified contractors
by establishing registration and licensing requirements.
2. Who must register under the New Jersey Home Improvement Contractor Act?
A) Only general contractors
B) Only subcontractors
C) Anyone performing home improvements for compensation
D) Only licensed electricians
,Answer: C
Explanation: The Act applies broadly to anyone offering home improvement services for pay, including
general contractors, subcontractors, and specialty trades.
3. Which entity is responsible for registering home improvement contractors in New Jersey?
A) Federal Housing Administration
B) New Jersey Division of Consumer Affairs
C) County Clerk's Office
D) Environmental Protection Agency
Answer: B
Explanation: In New Jersey, home improvement contractors must register with the Division of Consumer
Affairs, which oversees licensing and consumer protection compliance.
4. Which of the following is required for registration as a Home Improvement Contractor in NJ?
A) Proof of citizenship
B) Proof of general liability insurance
C) College degree
D) Union membership
Answer: B
,Explanation: Contractors must provide proof of general liability insurance as part of the registration
requirements.
5. What is the minimum Commercial General Liability insurance coverage required per occurrence for a
New Jersey home improvement contractor?
A) $100,000
B) $250,000
C) $500,000
D) $1,000,000
Answer: C
Explanation: New Jersey law requires contractors to carry at least $500,000 of commercial general
liability coverage per occurrence.
6. How often must a home improvement contractor's registration be renewed in New Jersey?
A) Every year
B) Every 2 years
C) Every 5 years
D) Never
Answer: B
, Explanation: Registration must be renewed biennially (every two years).
7. Which of the following is considered a "home improvement" under New Jersey statutes?
A) Building a new commercial warehouse
B) Constructing a new singlefamily home
C) Installing kitchen cabinets in an existing home
D) Excavating land for new development
Answer: C
Explanation: Home improvement refers to modifications or repairs to existing residential structures,
such as installing cabinets.
8. Construction of a new residence is considered a home improvement under the Act.
A) True
B) False
Answer: B
Explanation: Construction of a new residence is NOT considered a home improvement under the Act.
Practice Test | 200 Questions & Detailed Answers | NJ
HIC Licensing Registration & Consumer Protection | A+
Graded
Section 1: Registration & Licensing Requirements (Questions 140)
1. What is the primary purpose of the New Jersey Home Improvement Contractor Registration Act?
A) To regulate real estate agents
B) To protect consumers from fraud and poor workmanship
C) To increase construction taxes
D) To eliminate small contractors
Answer: B
Explanation: The law exists primarily to protect homeowners from dishonest or unqualified contractors
by establishing registration and licensing requirements.
2. Who must register under the New Jersey Home Improvement Contractor Act?
A) Only general contractors
B) Only subcontractors
C) Anyone performing home improvements for compensation
D) Only licensed electricians
,Answer: C
Explanation: The Act applies broadly to anyone offering home improvement services for pay, including
general contractors, subcontractors, and specialty trades.
3. Which entity is responsible for registering home improvement contractors in New Jersey?
A) Federal Housing Administration
B) New Jersey Division of Consumer Affairs
C) County Clerk's Office
D) Environmental Protection Agency
Answer: B
Explanation: In New Jersey, home improvement contractors must register with the Division of Consumer
Affairs, which oversees licensing and consumer protection compliance.
4. Which of the following is required for registration as a Home Improvement Contractor in NJ?
A) Proof of citizenship
B) Proof of general liability insurance
C) College degree
D) Union membership
Answer: B
,Explanation: Contractors must provide proof of general liability insurance as part of the registration
requirements.
5. What is the minimum Commercial General Liability insurance coverage required per occurrence for a
New Jersey home improvement contractor?
A) $100,000
B) $250,000
C) $500,000
D) $1,000,000
Answer: C
Explanation: New Jersey law requires contractors to carry at least $500,000 of commercial general
liability coverage per occurrence.
6. How often must a home improvement contractor's registration be renewed in New Jersey?
A) Every year
B) Every 2 years
C) Every 5 years
D) Never
Answer: B
, Explanation: Registration must be renewed biennially (every two years).
7. Which of the following is considered a "home improvement" under New Jersey statutes?
A) Building a new commercial warehouse
B) Constructing a new singlefamily home
C) Installing kitchen cabinets in an existing home
D) Excavating land for new development
Answer: C
Explanation: Home improvement refers to modifications or repairs to existing residential structures,
such as installing cabinets.
8. Construction of a new residence is considered a home improvement under the Act.
A) True
B) False
Answer: B
Explanation: Construction of a new residence is NOT considered a home improvement under the Act.
