MHIC NASCLA Contractors Practice Exam

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What is required for a contractor whose license is placed on inactive status?

  1. Maintain personal liability insurance

  2. Pay a renewal fee

  3. Stop all contracting activities

  4. File a written notice with the Commission

The correct answer is: Stop all contracting activities

When a contractor's license is placed on inactive status, it signifies that they are not authorized to engage in any contracting activities. This status allows the contractor to pause their business operations without completely surrendering their license. Consequently, all contracting activities must cease while the license remains inactive. Maintaining personal liability insurance, paying a renewal fee, or filing a written notice with the Commission are not required for a contractor on inactive status. Instead, the focus during this time is on refraining from any work that requires an active license. This protects the integrity of the licensing system and ensures that only those who are licensed and qualified are undertaking contractual work.

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