MINNESOTA RESIDENTIAL BUILDING CONTRACTOR QUALIFIER
EXAMINATION: BUSINESS QUALIFICATION COMPONENT -
COMPLETE EXAM QUESTION BANK (200 QUESTIONS WITH
ANSWERS & RATIONALES)
Question 1
Which Minnesota agency administers the residential building contractor
license?
A. Minnesota Department of Commerce
B. Minnesota Department of Labor and Industry (DLI)
C. Minnesota Board of Building Officials
D. Minnesota Secretary of State
Answer: B. Minnesota Department of Labor and Industry (DLI)
Rationale: The Minnesota Department of Labor and Industry (DLI) is the
state agency responsible for administering the residential building
contractor, remodeler, and roofer licensing programs. This includes
exam registration, license applications, and continuing education
requirements .
Question 2
How many questions are on the Minnesota residential building
contractor licensing exam?
A. 50 questions
B. 80 questions
,C. 110 questions
D. 150 questions
Answer: C. 110 questions
Rationale: The Minnesota residential building contractor exam consists
of 110 multiple-choice questions. Approximately 60% of these
questions relate to the Minnesota Residential Building Code, with the
remainder covering statutes and rules governing the residential
construction industry .
Question 3
What is the minimum required general liability insurance coverage for a
Minnesota residential building contractor?
A. $100,000 per occurrence / $300,000 aggregate / $25,000 products
B. $250,000 per occurrence / $500,000 aggregate / $50,000 products
C. $50,000 per occurrence / $100,000 aggregate / $25,000 products
D. $300,000 per occurrence / $300,000 aggregate / $25,000 products
Answer: A. $100,000 per occurrence / $300,000 aggregate / $25,000
products
Rationale: Minnesota law mandates that residential building contractors
carry a minimum of $100,000 bodily injury per occurrence, $300,000
general aggregate, and $25,000 products/completed operations
coverage .
Question 4
A contractor may be exempt from carrying workers' compensation
insurance if:
A. The contractor has fewer than three employees
B. The contractor's annual payroll is under $50,000
,C. The contractor is a sole proprietor with no employees
D. The contractor only works on residential remodels
Answer: C. The contractor is a sole proprietor with no employees
Rationale: Sole proprietors with no employees may claim the statutory
exemption from workers' compensation coverage. Once a contractor
has employees, workers' compensation insurance is required regardless
of the number of employees .
Question 5
What is the primary purpose of the Right to Cure law in Minnesota?
A. To limit contractor liability for construction defects
B. To allow contractors to fix defects before homeowners can sue
C. To eliminate all warranty obligations for contractors
D. To increase contractor profitability on warranty claims
Answer: B. To allow contractors to fix defects before homeowners can
sue
Rationale: The Right to Cure law gives contractors the opportunity to
correct construction defects before homeowners can pursue legal
action. This process helps resolve disputes without costly litigation .
Question 6
What is the maximum time a contractor has to file a mechanics lien in
Minnesota?
A. 30 days
B. 60 days
C. 90 days
D. 120 days
Answer: D. 120 days
, Rationale: In Minnesota, a mechanics lien must be filed within 120 days
after the last labor or materials were furnished. Contractors must be
aware of this deadline to protect their right to payment .
Question 7
Under Minnesota law, a contractor's license is held by:
A. The individual Qualifying Person
B. The business entity
C. The project manager
D. The surety company
Answer: B. The business entity
Rationale: The license is held by the business entity, with one owner,
officer, member, partner, or managing employee named as the
Qualifying Person. This is true for individual proprietorships,
partnerships, LLCs, and corporations .
Question 8
Which of the following is NOT a requirement for a valid mechanics lien
in Minnesota?
A. The contractor must be licensed
B. A pre-lien notice must be provided
C. The lien must be filed within 120 days
D. The contractor must be bonded
Answer: D. The contractor must be bonded
Rationale: While bonding may be required in some situations, it is not a
requirement for a valid mechanics lien. The contractor must be
licensed, provide pre-lien notice, and file the lien within 120 days .
EXAMINATION: BUSINESS QUALIFICATION COMPONENT -
COMPLETE EXAM QUESTION BANK (200 QUESTIONS WITH
ANSWERS & RATIONALES)
Question 1
Which Minnesota agency administers the residential building contractor
license?
A. Minnesota Department of Commerce
B. Minnesota Department of Labor and Industry (DLI)
C. Minnesota Board of Building Officials
D. Minnesota Secretary of State
Answer: B. Minnesota Department of Labor and Industry (DLI)
Rationale: The Minnesota Department of Labor and Industry (DLI) is the
state agency responsible for administering the residential building
contractor, remodeler, and roofer licensing programs. This includes
exam registration, license applications, and continuing education
requirements .
Question 2
How many questions are on the Minnesota residential building
contractor licensing exam?
A. 50 questions
B. 80 questions
,C. 110 questions
D. 150 questions
Answer: C. 110 questions
Rationale: The Minnesota residential building contractor exam consists
of 110 multiple-choice questions. Approximately 60% of these
questions relate to the Minnesota Residential Building Code, with the
remainder covering statutes and rules governing the residential
construction industry .
Question 3
What is the minimum required general liability insurance coverage for a
Minnesota residential building contractor?
A. $100,000 per occurrence / $300,000 aggregate / $25,000 products
B. $250,000 per occurrence / $500,000 aggregate / $50,000 products
C. $50,000 per occurrence / $100,000 aggregate / $25,000 products
D. $300,000 per occurrence / $300,000 aggregate / $25,000 products
Answer: A. $100,000 per occurrence / $300,000 aggregate / $25,000
products
Rationale: Minnesota law mandates that residential building contractors
carry a minimum of $100,000 bodily injury per occurrence, $300,000
general aggregate, and $25,000 products/completed operations
coverage .
Question 4
A contractor may be exempt from carrying workers' compensation
insurance if:
A. The contractor has fewer than three employees
B. The contractor's annual payroll is under $50,000
,C. The contractor is a sole proprietor with no employees
D. The contractor only works on residential remodels
Answer: C. The contractor is a sole proprietor with no employees
Rationale: Sole proprietors with no employees may claim the statutory
exemption from workers' compensation coverage. Once a contractor
has employees, workers' compensation insurance is required regardless
of the number of employees .
Question 5
What is the primary purpose of the Right to Cure law in Minnesota?
A. To limit contractor liability for construction defects
B. To allow contractors to fix defects before homeowners can sue
C. To eliminate all warranty obligations for contractors
D. To increase contractor profitability on warranty claims
Answer: B. To allow contractors to fix defects before homeowners can
sue
Rationale: The Right to Cure law gives contractors the opportunity to
correct construction defects before homeowners can pursue legal
action. This process helps resolve disputes without costly litigation .
Question 6
What is the maximum time a contractor has to file a mechanics lien in
Minnesota?
A. 30 days
B. 60 days
C. 90 days
D. 120 days
Answer: D. 120 days
, Rationale: In Minnesota, a mechanics lien must be filed within 120 days
after the last labor or materials were furnished. Contractors must be
aware of this deadline to protect their right to payment .
Question 7
Under Minnesota law, a contractor's license is held by:
A. The individual Qualifying Person
B. The business entity
C. The project manager
D. The surety company
Answer: B. The business entity
Rationale: The license is held by the business entity, with one owner,
officer, member, partner, or managing employee named as the
Qualifying Person. This is true for individual proprietorships,
partnerships, LLCs, and corporations .
Question 8
Which of the following is NOT a requirement for a valid mechanics lien
in Minnesota?
A. The contractor must be licensed
B. A pre-lien notice must be provided
C. The lien must be filed within 120 days
D. The contractor must be bonded
Answer: D. The contractor must be bonded
Rationale: While bonding may be required in some situations, it is not a
requirement for a valid mechanics lien. The contractor must be
licensed, provide pre-lien notice, and file the lien within 120 days .
