For Benefits Compliance specific state updates for Alaska click here.
Division of Insurance Issues Bulletin Concerning Premium Relief Due to COVID-19
April 02, 2020
On March 20, 2020, the Alaska Division of Insurance issued Bulletin B20-10 to property and casualty insurers, encouraging them to allow policyholders to self-audit and self-report changes in their exposure or risk profile and adjust premiums recognizing the difficult-to-quantify effects of the COVID-19 outbreak that affect exposure to loss in the near term.
The division also noted that prospective reductions in premium or retroactive refunds of premium to accommodate COVID-19-related changes in exposure or risk profile will not be considered a rebate or unfair discrimination to the extent they are reasonable and consistently applied.
AK Bulletin No. B20-10
Division of Insurance Issues Bulletin to All Insurers Prohibiting Carriers from Terminating for Nonpayment
April 02, 2020
On March 18, 2020, the Alaska Division of Insurance issued Bulletin B 20-08 to all insurance carriers prohibiting carriers from terminating insurance contracts due to nonpayment, allowing affected policyholders to continue insurance coverage. The division clarified that this grace period does not eliminate the obligation to pay the premium; however, carriers were encouraged to work with policyholders in the collection of premiums and to waive all late fees. The Bulletin remains in effect until June 1, 2020.
AK Bulletin B 20-08
Division of Insurance’s FAQs on Travel Insurance and COVID-19
April 02, 2020
On March 17, 2020 the Alaska Division of Insurance posted a list of FAQs for consumers including information on how epidemics are generally covered. According to the FAQ, insurance policies typically exclude epidemics and pandemics. Though, the FAQ also noted that there may be coverage if a specific country imposes travel restrictions. Some airlines and tour companies will allow cancellations outside of an insurance policy. Additionally, travel policies with medical coverage may cover any illnesses or hospitalizations that occur during a trip, but you need to review your policy to see if your policy is one of them. The Top Three Things to Remember:
- Read your policy to determine if travel insurance covers the types of events that you want to cover.
- Review the policy thoroughly. Ask about any coverage limitations or exclusions.
- Remember, your homeowner’s policy should protect your possessions while traveling. But if you have expensive items, consider purchasing additional coverage.
GOVERNOR ISSUES CONSUMER ADVISORY REGARDING BUSINESS INTERRUPTION INSURANCE
June 01, 2020
On May 13, 2020, the Governor of Alaska Issued a Consumer Advisory Alert to consumers and insurers. The alert advises insurers to conduct a thorough, fair and objective investigation of any claims received. If the insurer denies the claim, 3 AAC 26.070 requires insurers to “state the specific provisions, conditions, exclusions, and facts upon which the denial is based.” This should be clearly conveyed to the policyholder.
AK Consumer Advisory Alert