Alaska Contractor (Residential Endorsement) Exam — All Questions

What surety bond must a General Contractor file to register under AS 08.18?

• a.$5,000
• b.$10,000
• c.$25,000✓
• d.$100,000

AS 08.18.071 requires a General Contractor to file a $25,000 surety bond with the department. The bond gives customers, laborers, and suppliers a source of recovery if the contractor fails to perform or pay.AS 08.18.071 (bond)

An Alaska Handyman Contractor registration limits the registrant to projects valued at:

• a.$10,000 or less✓
• b.$1,000 or less
• c.$50,000 or less
• d.There is no project limit

A Handyman Contractor registration is limited to contract projects valued at $10,000 or less and requires a smaller $5,000 bond. Larger work requires the full General Contractor registration (and the residential endorsement for covered residential work).AS 08.18 (handyman registration)

What bond amount is required for a Handyman Contractor registration in Alaska?

• a.$25,000
• b.$5,000✓
• c.$50,000
• d.No bond is required for handymen

A Handyman Contractor posts a $5,000 surety bond — smaller than the $25,000 General Contractor bond — reflecting the handyman's $10,000-per-project ceiling. The same liability-insurance minimums still apply.AS 08.18 (handyman bond)

What is the minimum public-liability/property-damage insurance an Alaska contractor must carry?

• a.No insurance is required, only a bond
• b.$5,000 property / $10,000 per person / $20,000 multiple persons
• c.$100,000 property / $300,000 per person / $500,000 multiple persons
• d.$20,000 property damage / $50,000 injury or death to one person / $100,000 injury or death to more than one person✓

Alaska requires public-liability and property-damage insurance of at least $20,000 for property damage, $50,000 for injury (including death) to one person, and $100,000 for injury (including death) to more than one person. These are minimum floors that apply to both general contractors and handymen.AS 08.18 (public-liability and property-damage insurance)

A person takes on a $40,000 home remodel in Alaska while holding only a Handyman Contractor registration. This is:

• a.Fully permitted — handymen have no project limit
• b.Permitted if the homeowner signs a waiver
• c.Unlicensed contracting — the job exceeds the $10,000 handyman ceiling and needs full GC registration✓
• d.A federal offense investigated by the FBI

A handyman registration only covers projects of $10,000 or less. A $40,000 remodel exceeds that ceiling, so the work requires a full General Contractor registration — and, because it is residential alteration of a one-to-four-unit home over the 25% threshold, the Residential Contractor Endorsement as well. Working outside the handyman limit is unlicensed contracting under AS 08.18.AS 08.18 (registration required)

What is the primary purpose of the surety bond an Alaska contractor must file?

• a.To give injured customers, laborers, and material suppliers a source of recovery if the contractor fails to perform or pay✓
• b.To pay the contractor's income taxes
• c.To fund the contractor's advertising
• d.To replace the need for liability insurance

The registration bond is a consumer- and worker-protection device: it gives customers, laborers, and suppliers a way to recover if the contractor defaults. It does not replace the separately required public-liability and property-damage insurance.AS 08.18 (purpose of the bond)

A registered general contractor WITHOUT a residential endorsement advertises that it builds new single-family homes. Under AS 08.18.025 this is:

• a.Allowed, because advertising is not construction
• b.Prohibited — the endorsement rule also bars advertising or representing that it may do covered residential work✓
• c.Allowed only during winter months
• d.Allowed if the ad names a subcontractor

AS 08.18.025 reaches beyond physical work: an unendorsed contractor may not bid on, advertise, or publicly represent that it may construct or alter covered one-to-four-unit residential structures. Advertising the service without the endorsement violates the statute.AS 08.18.025 (bidding and advertising)