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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What must a person do if their license is put on inactive status?

Return their license to the State
Maintain required liability insurance coverage
Continue contracting activities
None of the above

The correct answer is: Return their license to the State

When a contractor's license is placed on inactive status, it typically indicates that the individual is not currently allowed to engage in contracting activities. In many jurisdictions, the requirement to return the license to the state serves multiple purposes: it ensures that the contractor is no longer conducting business under a valid license and helps the state maintain accurate and up-to-date records of licensed professionals. Inactive status often means that the contractor must not continue any contracting activities until their license is reactivated. While maintaining liability insurance may be an important obligation for licensed contractors generally, it does not apply when the license is inactive as they are not permitted to engage in contracting work. Therefore, returning the license to the state is the appropriate action required in this situation.