MHIC NASCLA Contractors Practice Exam 2025 – The Comprehensive All-in-One Guide to Exam Success!

Question: 1 / 400

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

No

Only if they reactivate it

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.

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Yes, but it is reduced

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