MHIC NASCLA CONTRACTORS Test STUDY
GUIDE 2025/2026 ACCURATE QUESTIONS AND
VERIFIED CORRECT SOLUTIONS WITH
RATIONALES || 100% GUARANTEED PASS
<RECENT VERSION>
1. How long does a claimant have to bring a claim against the guaranty fund? -
ANSWER ✓ 3 years from discovery of the loss or damage
2. How many days does a contractor have to respond in writing to the copy of
claim that was sent by the commission? - ANSWER ✓ 10 days
3. If within ________ after the commission gives notice , a contractor on
whose amount a claim was paid does not reimburse the fund in full, the
commission may sue the contractor for reimbursement. - ANSWER ✓ 60
days
4. In addtion to full reimbursement of the fund, a contractor is responsible to
pay at least _________interest on the amount to reimburse. - ANSWER ✓
10 %
5. The state can record a lien against any real property owners by the contractor
for a debt owed to the fund - ANSWER ✓ True
6. If the commission pays a claim from the fund base on the actions or
omissions of a contractor, the commission may suspend the contractors
license until full reimbursement of the fund plus at least 10%interest -
ANSWER ✓ True
7. A home improvement contract in compliance with the home improvement
laws would include all of the following except - ANSWER ✓ Names and
license numbers of subcontractors
,8. A salesperson may not represent 2 contractors at the same time for the same
project. - ANSWER ✓ True
9. Can a sales person legally accept money for themselves from the customer -
ANSWER ✓ No
10.It is against the law for building and permits departments to issue a permit to
contractor without the contractors license number. - ANSWER ✓ True
11.If a contractor fails to correct violation of the building code within
reasonable time period, the county or municipality inspecting the project
shall notify the commission - ANSWER ✓ True
12.What is the maximum fine for contracting without a license-second offense -
ANSWER ✓ $5,000 and/or 2 years in jail or both
13.A home improvement contract in compliance with the home improvement
laws would include all of the following except - ANSWER ✓ Names and
license numbers of subcontractors
14.A salesperson may not represent 2 contractors at the same time for the same
project. - ANSWER ✓ True
15.Can a sales person legally accept money for themselves from the customer -
ANSWER ✓ No
16.It is against the law for building and permits departments to issue a permit to
contractor without the contractors license number. - ANSWER ✓ True
17.If a contractor fails to correct violation of the building code within
reasonable time period, the county or municipality inspecting the project
shall notify the commission - ANSWER ✓ True
18.What is the maximum fine for contracting without a license-second offense -
ANSWER ✓ $5,000 and/or 2 years in jail or both
, 19.Contractor, jack smith, is not getting along with hector jones , his customer.
If he decides not to complete the contract, has jack broken any laws? -
ANSWER ✓ Yes
20.Can a contractor decide to use material other than specified in the contract
documents without getting permission from the owner? - ANSWER ✓ No
21.Contractors may not : - ANSWER ✓ Lie on their license application
Make false promises
Misrepresent their service or product
22.Contractor, jack brown, makes a deal with customer, ameal cougar , to
provide an estimate of $40,000 on project where the actual cost are
$30,000,allowing ameal to pocket $10,000 after securing a mortgage at
$40,000 and paying off jack this is : - ANSWER ✓ Fraud
An illegal act
A misdemeanor
23.All of the about
24.If a contractor sells personstoos selling or working with the contractor for
any reason, the contractor has a responsibility to the state to inform the
commission? - ANSWER ✓ True
25.All advertising has to provide the identifier "Maryland home improvement
commission license no___________"or "MHIC - ANSWER ✓ True
26.What is the maximum penalty the commission may impose upon a
contractor, licensed or unlicensed , per violation of these laws - ANSWER ✓
$5,000
27.Advertising must be done in a way as to avoid misrepresentating the
product, service or Terms of sale so as not to deceive the customer. -
ANSWER ✓ True
28.An applicant must provide to the commission, a credit report with their
application. - ANSWER ✓ True
GUIDE 2025/2026 ACCURATE QUESTIONS AND
VERIFIED CORRECT SOLUTIONS WITH
RATIONALES || 100% GUARANTEED PASS
<RECENT VERSION>
1. How long does a claimant have to bring a claim against the guaranty fund? -
ANSWER ✓ 3 years from discovery of the loss or damage
2. How many days does a contractor have to respond in writing to the copy of
claim that was sent by the commission? - ANSWER ✓ 10 days
3. If within ________ after the commission gives notice , a contractor on
whose amount a claim was paid does not reimburse the fund in full, the
commission may sue the contractor for reimbursement. - ANSWER ✓ 60
days
4. In addtion to full reimbursement of the fund, a contractor is responsible to
pay at least _________interest on the amount to reimburse. - ANSWER ✓
10 %
5. The state can record a lien against any real property owners by the contractor
for a debt owed to the fund - ANSWER ✓ True
6. If the commission pays a claim from the fund base on the actions or
omissions of a contractor, the commission may suspend the contractors
license until full reimbursement of the fund plus at least 10%interest -
ANSWER ✓ True
7. A home improvement contract in compliance with the home improvement
laws would include all of the following except - ANSWER ✓ Names and
license numbers of subcontractors
,8. A salesperson may not represent 2 contractors at the same time for the same
project. - ANSWER ✓ True
9. Can a sales person legally accept money for themselves from the customer -
ANSWER ✓ No
10.It is against the law for building and permits departments to issue a permit to
contractor without the contractors license number. - ANSWER ✓ True
11.If a contractor fails to correct violation of the building code within
reasonable time period, the county or municipality inspecting the project
shall notify the commission - ANSWER ✓ True
12.What is the maximum fine for contracting without a license-second offense -
ANSWER ✓ $5,000 and/or 2 years in jail or both
13.A home improvement contract in compliance with the home improvement
laws would include all of the following except - ANSWER ✓ Names and
license numbers of subcontractors
14.A salesperson may not represent 2 contractors at the same time for the same
project. - ANSWER ✓ True
15.Can a sales person legally accept money for themselves from the customer -
ANSWER ✓ No
16.It is against the law for building and permits departments to issue a permit to
contractor without the contractors license number. - ANSWER ✓ True
17.If a contractor fails to correct violation of the building code within
reasonable time period, the county or municipality inspecting the project
shall notify the commission - ANSWER ✓ True
18.What is the maximum fine for contracting without a license-second offense -
ANSWER ✓ $5,000 and/or 2 years in jail or both
, 19.Contractor, jack smith, is not getting along with hector jones , his customer.
If he decides not to complete the contract, has jack broken any laws? -
ANSWER ✓ Yes
20.Can a contractor decide to use material other than specified in the contract
documents without getting permission from the owner? - ANSWER ✓ No
21.Contractors may not : - ANSWER ✓ Lie on their license application
Make false promises
Misrepresent their service or product
22.Contractor, jack brown, makes a deal with customer, ameal cougar , to
provide an estimate of $40,000 on project where the actual cost are
$30,000,allowing ameal to pocket $10,000 after securing a mortgage at
$40,000 and paying off jack this is : - ANSWER ✓ Fraud
An illegal act
A misdemeanor
23.All of the about
24.If a contractor sells personstoos selling or working with the contractor for
any reason, the contractor has a responsibility to the state to inform the
commission? - ANSWER ✓ True
25.All advertising has to provide the identifier "Maryland home improvement
commission license no___________"or "MHIC - ANSWER ✓ True
26.What is the maximum penalty the commission may impose upon a
contractor, licensed or unlicensed , per violation of these laws - ANSWER ✓
$5,000
27.Advertising must be done in a way as to avoid misrepresentating the
product, service or Terms of sale so as not to deceive the customer. -
ANSWER ✓ True
28.An applicant must provide to the commission, a credit report with their
application. - ANSWER ✓ True
