VIRGINIA HIC REAL EXAM 300 ACTUAL
QUESTIONS AND CORRECT ANSWERS WITH
RATIONALE LATEST UPDATE ALREADY
GRADED A+ ASSURED PASS
The Virginia Home Improvement Contractor (HIC) exam is a comprehensive,
open-book assessment that validates your knowledge of residential construction
and contracting practices in Virginia. The exam covers two primary domains:
business and legal topics, and technical construction knowledge. Business topics
include Virginia contractor licensing laws, contract requirements, project
management, estimating, and OSHA safety standards. The technical portion tests
knowledge of specific trade areas such as rough and finish carpentry, roofing,
siding, drywall, concrete, masonry, insulation, and window and door installation.
Section 1: Contractor Licensing and Regulations (Questions 1-
40)
Question 1
What is the PRIMARY purpose of licensing for home improvement contractors?
A) To generate revenue for the state
B) To protect the health and welfare of the public
C) To limit competition in the construction industry
D) To ensure all contractors have insurance
Answer: B
Rationale: The primary purpose of licensing is to protect the health, safety, and
welfare of the public by ensuring contractors meet minimum standards of
competency and professionalism .
Question 2
All Class A contractor licensure applications MUST include:
A) A recent photograph of the applicant
,B) Information on the knowledge, skills, and abilities of the applicant
C) A list of all past employers
D) A credit report
Answer: B
Rationale: Class A contractor licensure applications must include information
demonstrating the applicant's knowledge, skills, and abilities to perform
contracting work competently .
Question 3
A firm desiring to be licensed as a Class B contractor MUST have a MINIMUM
net worth of:
A) $5,000
B) $10,000
C) $15,000
D) $20,000
Answer: C
Rationale: Class B contractors must demonstrate a minimum net worth of $15,000
to ensure financial stability and capability to complete projects .
Question 4
How much is the Class A initial license fee?
A) $100
B) $200
C) $300
D) $400
Answer: B
Rationale: The Class A initial license fee is $200, which covers the cost of
application processing and initial licensing .
Question 5
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
,Answer: B
Rationale: Licensees must report any name change to the Board within 30 days to
maintain accurate licensing records .
Question 6
According to the Board Rules and Regulations, a full-time employee is one who
works a MINIMUM of how many hours per week?
A) 20 hours
B) 25 hours
C) 30 hours
D) 35 hours
Answer: C
Rationale: A full-time employee is defined as working a minimum of 30 hours per
week according to Board regulations .
Question 7
What is the MAXIMUM penalty for a contractor who undertakes work without the
proper class of license?
A) $100 fine per day
B) $250 fine per day
C) $500 fine per day for each day of violation
D) $1,000 fine per day
Answer: C
Rationale: Contractors who work without the proper license face a maximum
penalty of $500 fine per day for each day of violation, plus misdemeanor penalties
.
Question 8
Which of the following is a requirement for a joint venture to be licensed?
A) Only one party needs to be licensed
B) Either the joint venture or each contracting party must be licensed
C) No license is required for joint ventures
D) Only the lead contractor needs a license
Answer: B
Rationale: For a joint venture to be legally recognized, either the joint venture
entity itself or each contracting party must be licensed .
, Question 9
The application for licensure MUST include:
A) Personal references
B) The business address of the proposed designated employee
C) A business plan
D) Marketing materials
Answer: B
Rationale: The license application must include the business address of the
proposed designated employee who will oversee operations .
Question 10
When a claimant is paid funds from the Contractors Recovery Trust Fund:
A) The contractor's license is revoked
B) The contractor must reimburse the fund
C) The contractor receives a warning
D) The claim is considered resolved
Answer: A
Rationale: When funds are paid from the Contractors Recovery Trust Fund to a
claimant, the contractor's license is revoked .
Question 11
A contract for which of the following types of structures may be subject to
recovery from the Transaction Recovery Fund?
A) Commercial buildings only
B) Industrial facilities only
C) Residential structures only
D) All types of structures
Answer: C
Rationale: Recovery from the Transaction Recovery Fund applies specifically to
residential structures .
Question 12
A verified claim for payment from the Transaction Recovery Fund MUST occur
within a MAXIMUM of what period of time from the date the claimant was
awarded a final judgment?
A) 6 months
B) 12 months
QUESTIONS AND CORRECT ANSWERS WITH
RATIONALE LATEST UPDATE ALREADY
GRADED A+ ASSURED PASS
The Virginia Home Improvement Contractor (HIC) exam is a comprehensive,
open-book assessment that validates your knowledge of residential construction
and contracting practices in Virginia. The exam covers two primary domains:
business and legal topics, and technical construction knowledge. Business topics
include Virginia contractor licensing laws, contract requirements, project
management, estimating, and OSHA safety standards. The technical portion tests
knowledge of specific trade areas such as rough and finish carpentry, roofing,
siding, drywall, concrete, masonry, insulation, and window and door installation.
Section 1: Contractor Licensing and Regulations (Questions 1-
40)
Question 1
What is the PRIMARY purpose of licensing for home improvement contractors?
A) To generate revenue for the state
B) To protect the health and welfare of the public
C) To limit competition in the construction industry
D) To ensure all contractors have insurance
Answer: B
Rationale: The primary purpose of licensing is to protect the health, safety, and
welfare of the public by ensuring contractors meet minimum standards of
competency and professionalism .
Question 2
All Class A contractor licensure applications MUST include:
A) A recent photograph of the applicant
,B) Information on the knowledge, skills, and abilities of the applicant
C) A list of all past employers
D) A credit report
Answer: B
Rationale: Class A contractor licensure applications must include information
demonstrating the applicant's knowledge, skills, and abilities to perform
contracting work competently .
Question 3
A firm desiring to be licensed as a Class B contractor MUST have a MINIMUM
net worth of:
A) $5,000
B) $10,000
C) $15,000
D) $20,000
Answer: C
Rationale: Class B contractors must demonstrate a minimum net worth of $15,000
to ensure financial stability and capability to complete projects .
Question 4
How much is the Class A initial license fee?
A) $100
B) $200
C) $300
D) $400
Answer: B
Rationale: The Class A initial license fee is $200, which covers the cost of
application processing and initial licensing .
Question 5
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
,Answer: B
Rationale: Licensees must report any name change to the Board within 30 days to
maintain accurate licensing records .
Question 6
According to the Board Rules and Regulations, a full-time employee is one who
works a MINIMUM of how many hours per week?
A) 20 hours
B) 25 hours
C) 30 hours
D) 35 hours
Answer: C
Rationale: A full-time employee is defined as working a minimum of 30 hours per
week according to Board regulations .
Question 7
What is the MAXIMUM penalty for a contractor who undertakes work without the
proper class of license?
A) $100 fine per day
B) $250 fine per day
C) $500 fine per day for each day of violation
D) $1,000 fine per day
Answer: C
Rationale: Contractors who work without the proper license face a maximum
penalty of $500 fine per day for each day of violation, plus misdemeanor penalties
.
Question 8
Which of the following is a requirement for a joint venture to be licensed?
A) Only one party needs to be licensed
B) Either the joint venture or each contracting party must be licensed
C) No license is required for joint ventures
D) Only the lead contractor needs a license
Answer: B
Rationale: For a joint venture to be legally recognized, either the joint venture
entity itself or each contracting party must be licensed .
, Question 9
The application for licensure MUST include:
A) Personal references
B) The business address of the proposed designated employee
C) A business plan
D) Marketing materials
Answer: B
Rationale: The license application must include the business address of the
proposed designated employee who will oversee operations .
Question 10
When a claimant is paid funds from the Contractors Recovery Trust Fund:
A) The contractor's license is revoked
B) The contractor must reimburse the fund
C) The contractor receives a warning
D) The claim is considered resolved
Answer: A
Rationale: When funds are paid from the Contractors Recovery Trust Fund to a
claimant, the contractor's license is revoked .
Question 11
A contract for which of the following types of structures may be subject to
recovery from the Transaction Recovery Fund?
A) Commercial buildings only
B) Industrial facilities only
C) Residential structures only
D) All types of structures
Answer: C
Rationale: Recovery from the Transaction Recovery Fund applies specifically to
residential structures .
Question 12
A verified claim for payment from the Transaction Recovery Fund MUST occur
within a MAXIMUM of what period of time from the date the claimant was
awarded a final judgment?
A) 6 months
B) 12 months
