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MHIC Exam Questions & Answers (2025/2026) – Licensing, Contracts, OSHA, Business Law – Maryland Home Improvement Commission

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This comprehensive exam guide contains the most current and verified MHIC (Maryland Home Improvement Commission) exam questions and answers, fully aligned with the 2025/2026 state certification requirements. With over 100 high-yield Q&As, the document is structured around key legal and operational topics tested in the MHIC contractor and salesperson licensing exams. Each answer is clearly marked and updated in accordance with the Annotated Code of Maryland (Title 8, Business Regulation Article) and COMAR regulations, covering the 8 core subtitles of MHIC law. The guide is ideal for learners seeking clarity on compliance, contract structure, legal responsibilities, and financial management within the home improvement industry. Core topics include: What qualifies as home improvement (included vs. excluded work) License types and renewal requirements Salesperson and contractor roles and limitations Home improvement contract components, arbitration, and consumer rights Guaranty Fund rules, claim limits, and recovery procedures Advertising regulations and penalties OSHA safety compliance, EPA lead rules, and emergency plans Business structures, workers’ compensation, payroll tax, and liability coverage Financial literacy: balance sheets, tax rates, Circular E (IRS Guide) It also details important legal provisions such as misrepresentation, lien rights, homeowner protections under the Door-to-Door Sales Act, and contractor penalties for unlicensed work. Perfect for: Aspiring and existing MHIC-licensed contractors and salespeople Construction business owners and managers Real estate and legal professionals involved in residential contracting Trade school and construction law students Anyone preparing for the MHIC contractor exam or license renewal in Maryland This exam pack ensures complete readiness by merging legal accuracy with real-world application, supporting a successful path to MHIC certification and compliance. Keywords: MHIC exam 2025, Maryland home improvement license, contractor license MD, home improvement contract law, Guaranty Fund rules, MHIC test questions, OSHA compliance MHIC, business regulation Title 8, EPA lead rules, construction law Maryland, contractor penalties, Maryland licensing exam, salesperson license MD, payroll tax compliance, workers compensation MD

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MHIC 2025/2026 Exam Questions with
Detailed Verified Answers (100% Correct
Answers) | Already Graded A+



Home improvement - 🧠ANSWER ✔✔the addition to or alteration,

conversion, improvement, modernization, remodeling, repair, or

replacement of a building or part of the building


Excluded (is not a) home improvement - 🧠ANSWER ✔✔new home

construction or work done to comply with the guarantee of completion for a

new building


Excluded (is not a) home improvement - 🧠ANSWER ✔✔sale of materials, if

the seller does not arrange to perform, or does not perform, either directly

or indirectly, the installation of the materials


Included (is a) home improvement - 🧠ANSWER ✔✔construction,

improvement, or replacement on the land adjacent to the residents of a

,driveway, fallout shelter, fence, garage, landscaping, deck, pier, porch or

swimming pool


Included (is a) home improvement - 🧠ANSWER ✔✔installation in the

residence of an awning, fire alarm, or storm window


Excluded (is not a) home improvement - 🧠ANSWER ✔✔work done on

commonly owned areas of condominiums


Contractor - 🧠ANSWER ✔✔a person who performs or offers or agrees to

perform a home improvement for an owner. And employee of the owner is

not a contractor.


Home improvement contract - 🧠ANSWER ✔✔an agreement between a

homeowner in a contractor to perform a home improvement


Handyman licensing - 🧠ANSWER ✔✔is required to hold a MHIC license, no

matter how small the contract.


License renewal time frame - 🧠ANSWER ✔✔every two years the licensee

must apply


Licensing exemption - 🧠ANSWER ✔✔an employee of a contractor who is

not a salesperson

, A licensing exemption - 🧠ANSWER ✔✔an employee of a licensed

contractor who sells the home improvement at a retail establishment


A licensing exemption - 🧠ANSWER ✔✔a telephone solicitor


An exemption from licensing - 🧠ANSWER ✔✔an employee of a

subcontractor


A licensing exemption - 🧠ANSWER ✔✔a security system technician


An exemption from licensing by MHIC - 🧠ANSWER ✔✔someone who holds

another state license and who is working with in the scope of that license,

such as an architect or plumber, and their salesperson


Exam scores are good for how long? - 🧠ANSWER ✔✔2 years


Passing exam percentage - 🧠ANSWER ✔✔70%


Amount of general liability insurance - 🧠ANSWER ✔✔$50,000


Experience required to be licensed - 🧠ANSWER ✔✔2 years of trade

experience or comparable educational training


Trade experience includes - 🧠ANSWER ✔✔participation in a registered

apprentice program


3
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