MARYLAND MHIC CONTRACTOR EXAM 2026/2027 |
COMPLETE QUESTIONS AND ANSWERS (VERIFIED
ANSWERS) | EXAM PREP | COMPREHENSIVE EXAM
GUIDE 2026&2027
1. What is the primary purpose of the Maryland Home Improvement Commission
(MHIC)?
A. To issue building permits for all construction projects
B. To regulate and license home improvement contractors and protect consumers
C. To establish property tax rates
D. To inspect all commercial construction projects
Answer: B
MHIC regulates home improvement contractors and related licensees while providing
consumer protections under Maryland's Home Improvement Law.
2. A contractor wants to perform home improvement work on a Maryland residence.
Which credential is generally required before performing or agreeing to perform
the work?
A. MHIC contractor license
B. County business permit only
C. Federal contractor registration
D. Salesperson license
Answer: A
A contractor performing or agreeing to perform home improvement work in Maryland
generally must hold the appropriate MHIC license.
3. Which Maryland entity administers the home improvement contractor licensing
program?
A. Maryland Department of Transportation
B. Maryland Department of Housing
C. Maryland Home Improvement Commission
D. Maryland State Board of Architects
Answer: C
The Maryland Home Improvement Commission administers the licensing and regulatory
program for home improvement contractors.
, 4. An applicant has substantial construction experience but has never operated a home
improvement business. Which statement is most accurate regarding contractor
examination eligibility?
A. Business ownership is required before taking the exam
B. The applicant must first obtain a salesperson license
C. The applicant must obtain a county permit before testing
D. Relevant experience, construction experience, and/or related education may satisfy the
experience requirement
Answer: D
Maryland requires contractor applicants to demonstrate at least two years of relevant home
improvement work, construction, and/or related education.
5. What is the minimum passing score currently required for the MHIC contractor
examination?
A. 60%
B. 65%
C. 70%
D. 75%
Answer: C
The MHIC contractor examination requires a minimum score of 70 percent to pass.
6. The MHIC contractor examination is administered by which testing organization?
A. PSI Examination Services
B. Prometric exclusively
C. Pearson VUE exclusively
D. Maryland State Board Testing Center
Answer: A
PSI Examination Services administers the MHIC contractor and salesperson examinations.
7. A contractor passes the MHIC examination but delays submitting the license
application. How long is the passing examination score valid?
A. Six months
B. One year
C. Three years
D. Two years
Answer: D
A passing examination score expires after two years if the applicant does not apply for
licensure.
, 8. A contractor fails the MHIC examination. What is the normal minimum waiting
period before reapplying?
A. 7 days
B. 30 days
C. 45 days
D. 90 days
Answer: B
After an unsuccessful attempt, the applicant must wait 30 days before reapplying;
subsequent requests are subject to additional waiting requirements.
9. Which publication is identified as the basis for the MHIC contractor examination
content?
A. Maryland Residential Building Manual
B. Maryland Contractor Tax Handbook
C. Contractors Guide to Business, Law and Project Management, 5th edition
D. International Residential Code only
Answer: C
The MHIC identifies the fifth edition of the Contractors Guide to Business, Law and Project
Management as the examination content source.
10. Which type of work is generally outside the scope of an MHIC home improvement
license?
A. Remodeling an existing kitchen
B. Replacing windows in an existing residence
C. Renovating an existing bathroom
D. Constructing an entirely new home
Answer: D
The MHIC license covers qualifying improvements to existing homes but does not replace
Maryland's separate registration requirements for new home builders.
11. A contractor licensed in another state wants to perform home improvement work in
Maryland. What should the contractor assume?
A. The out-of-state license automatically transfers
B. No Maryland license is necessary if the contractor has insurance
C. An MHIC license is required
D. Only a county permit is required
Answer: C
, Maryland does not provide general reciprocity for MHIC licensing, and out-of-state
contractors performing Maryland home improvement work must meet Maryland
requirements.
12. Which statement best describes Maryland's position on reciprocity for MHIC
contractor licensing?
A. Maryland automatically accepts all neighboring-state licenses
B. Maryland does not offer reciprocity with other states
C. Reciprocity applies to contractors with five years of experience
D. Reciprocity applies only to corporations
Answer: B
MHIC states that it does not offer reciprocity because licensees must demonstrate knowledge
of Maryland laws and regulations.
13. A contractor operates under a corporation. Which additional documentation may
be required for the MHIC application?
A. Articles of incorporation and a Certificate of Good Standing
B. Federal patent registration
C. County zoning variance
D. Homeowner association approval
Answer: A
A contractor representing a corporation must provide appropriate corporate documentation,
including articles of incorporation and a Certificate of Good Standing.
14. A contractor wants to operate under a trade name. What should be done before
using the name for MHIC purposes?
A. Begin advertising and register later
B. Use the owner's personal name only
C. Obtain approval from every county
D. Confirm the name's availability with MHIC and register it with the Maryland
Department of Assessments and Taxation
Answer: D
Trade-name use requires appropriate MHIC verification and registration with the Maryland
Department of Assessments and Taxation.
15. What minimum liability insurance amount must a contractor generally maintain for
MHIC licensing?
A. $10,000
B. $25,000
COMPLETE QUESTIONS AND ANSWERS (VERIFIED
ANSWERS) | EXAM PREP | COMPREHENSIVE EXAM
GUIDE 2026&2027
1. What is the primary purpose of the Maryland Home Improvement Commission
(MHIC)?
A. To issue building permits for all construction projects
B. To regulate and license home improvement contractors and protect consumers
C. To establish property tax rates
D. To inspect all commercial construction projects
Answer: B
MHIC regulates home improvement contractors and related licensees while providing
consumer protections under Maryland's Home Improvement Law.
2. A contractor wants to perform home improvement work on a Maryland residence.
Which credential is generally required before performing or agreeing to perform
the work?
A. MHIC contractor license
B. County business permit only
C. Federal contractor registration
D. Salesperson license
Answer: A
A contractor performing or agreeing to perform home improvement work in Maryland
generally must hold the appropriate MHIC license.
3. Which Maryland entity administers the home improvement contractor licensing
program?
A. Maryland Department of Transportation
B. Maryland Department of Housing
C. Maryland Home Improvement Commission
D. Maryland State Board of Architects
Answer: C
The Maryland Home Improvement Commission administers the licensing and regulatory
program for home improvement contractors.
, 4. An applicant has substantial construction experience but has never operated a home
improvement business. Which statement is most accurate regarding contractor
examination eligibility?
A. Business ownership is required before taking the exam
B. The applicant must first obtain a salesperson license
C. The applicant must obtain a county permit before testing
D. Relevant experience, construction experience, and/or related education may satisfy the
experience requirement
Answer: D
Maryland requires contractor applicants to demonstrate at least two years of relevant home
improvement work, construction, and/or related education.
5. What is the minimum passing score currently required for the MHIC contractor
examination?
A. 60%
B. 65%
C. 70%
D. 75%
Answer: C
The MHIC contractor examination requires a minimum score of 70 percent to pass.
6. The MHIC contractor examination is administered by which testing organization?
A. PSI Examination Services
B. Prometric exclusively
C. Pearson VUE exclusively
D. Maryland State Board Testing Center
Answer: A
PSI Examination Services administers the MHIC contractor and salesperson examinations.
7. A contractor passes the MHIC examination but delays submitting the license
application. How long is the passing examination score valid?
A. Six months
B. One year
C. Three years
D. Two years
Answer: D
A passing examination score expires after two years if the applicant does not apply for
licensure.
, 8. A contractor fails the MHIC examination. What is the normal minimum waiting
period before reapplying?
A. 7 days
B. 30 days
C. 45 days
D. 90 days
Answer: B
After an unsuccessful attempt, the applicant must wait 30 days before reapplying;
subsequent requests are subject to additional waiting requirements.
9. Which publication is identified as the basis for the MHIC contractor examination
content?
A. Maryland Residential Building Manual
B. Maryland Contractor Tax Handbook
C. Contractors Guide to Business, Law and Project Management, 5th edition
D. International Residential Code only
Answer: C
The MHIC identifies the fifth edition of the Contractors Guide to Business, Law and Project
Management as the examination content source.
10. Which type of work is generally outside the scope of an MHIC home improvement
license?
A. Remodeling an existing kitchen
B. Replacing windows in an existing residence
C. Renovating an existing bathroom
D. Constructing an entirely new home
Answer: D
The MHIC license covers qualifying improvements to existing homes but does not replace
Maryland's separate registration requirements for new home builders.
11. A contractor licensed in another state wants to perform home improvement work in
Maryland. What should the contractor assume?
A. The out-of-state license automatically transfers
B. No Maryland license is necessary if the contractor has insurance
C. An MHIC license is required
D. Only a county permit is required
Answer: C
, Maryland does not provide general reciprocity for MHIC licensing, and out-of-state
contractors performing Maryland home improvement work must meet Maryland
requirements.
12. Which statement best describes Maryland's position on reciprocity for MHIC
contractor licensing?
A. Maryland automatically accepts all neighboring-state licenses
B. Maryland does not offer reciprocity with other states
C. Reciprocity applies to contractors with five years of experience
D. Reciprocity applies only to corporations
Answer: B
MHIC states that it does not offer reciprocity because licensees must demonstrate knowledge
of Maryland laws and regulations.
13. A contractor operates under a corporation. Which additional documentation may
be required for the MHIC application?
A. Articles of incorporation and a Certificate of Good Standing
B. Federal patent registration
C. County zoning variance
D. Homeowner association approval
Answer: A
A contractor representing a corporation must provide appropriate corporate documentation,
including articles of incorporation and a Certificate of Good Standing.
14. A contractor wants to operate under a trade name. What should be done before
using the name for MHIC purposes?
A. Begin advertising and register later
B. Use the owner's personal name only
C. Obtain approval from every county
D. Confirm the name's availability with MHIC and register it with the Maryland
Department of Assessments and Taxation
Answer: D
Trade-name use requires appropriate MHIC verification and registration with the Maryland
Department of Assessments and Taxation.
15. What minimum liability insurance amount must a contractor generally maintain for
MHIC licensing?
A. $10,000
B. $25,000
