MHIC NASCLA Contractors Practice Exam

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Prepare for the MHIC NASCLA Contractors Exam with our comprehensive quiz that includes multiple-choice questions designed to help you familiarize yourself with the exam format and increase your chances of passing. Get ready to succeed!

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Must a contractor who places their license on inactive status pay a fee to renew that license?

No
Only if they reactivate it
Yes
Yes, but it is reduced

The correct answer is: Yes

In the context of contractor licensing, when a contractor places their license on inactive status, they are typically still required to pay a fee to maintain that license. This fee is often necessary to cover administrative costs and ensure that the license remains in good standing, even if it is not currently being used for active contracting work. Maintaining a license, regardless of its status, requires compliance with regulations set by the licensing board, which usually includes fee payment. This approach helps regulate the profession and keeps records accurate, ensuring that all license holders are accounted for, whether they are actively working or not. Future reactivation of the license can also be smoother if the license has remained in good standing during the inactive period, which is why the fee structure is often designed to include a requirement even for inactive licenses.