MHIC NASCLA Contractors Practice Exam

What happens to a license that is not renewed?

1. It remains active

2. It expires

3. It is automatically renewed

4. It becomes inactive

The correct answer is: It expires

When a license is not renewed, it expires. An expired license means that the licensed individual is no longer authorized to engage in activities that require that license. Renewal typically involves meeting certain requirements, such as continuing education or fee payment. Failure to complete the renewal process results in the license losing its validity. While options like remaining active and automatic renewal suggest ongoing status without intervention, and becoming inactive could imply a temporary suspension, the correct outcome for a license that has not gone through the renewal process is that it expires, thus ceasing to hold any functional authority. This underscores the importance of timely renewals to maintain legal standing in the field.