MHIC Licensing

Question 1

Under Maryland law, who is required to hold an MHIC license before performing home improvement work?

Accepted Answer

Any contractor performing home improvement work valued at $500 or more in labor and materials

Answer

Only contractors performing structural work on residential properties

Answer

Contractors whose annual home improvement revenue exceeds $10,000

Answer

Any subcontractor working on a licensed contractor's project

Question 2

What is the minimum surety bond amount required for an MHIC license applicant?

Accepted Answer

$20,000

Answer

$10,000

Answer

$50,000

Answer

$5,000

Question 3

How long is an MHIC license valid before it must be renewed?

Accepted Answer

2 years

Answer

1 year

Answer

3 years

Answer

5 years

Question 4

Which Maryland state agency issues and enforces MHIC licenses?

Accepted Answer

Maryland Home Improvement Commission (MHIC)

Answer

Maryland Department of Labor

Answer

Maryland State Board of Contractors

Answer

Maryland Department of Housing and Community Development

Question 5

What is the consequence if an MHIC licensee's required surety bond lapses or is cancelled during the license period?

Accepted Answer

The license is automatically suspended until a replacement bond is filed

Answer

The contractor has 30 days to replace the bond before any action is taken

Answer

The contractor must cease work, but the license remains technically active

Answer

The license is immediately and permanently revoked

Question 6

Which of the following individuals is EXEMPT from obtaining an MHIC license in Maryland?

Accepted Answer

A homeowner personally performing improvements on their own primary residence

Answer

A roofing contractor replacing a residential roof for $2,000

Answer

A painting company contracted to repaint the interior of a private home

Answer

A landscaping firm hired to install a retaining wall at a residence