Alaska Bulletin B24-10

On August 26, 2024, Governor Mike Dunleavy issued a verbal disaster declaration for the heavy rain and landslides that impacted Ketchikan. The declaration activates the State Emergency Operations Plan, bringing together a statewide coordinated response to communities impacted by this disaster. In response to the verbal disaster declaration, the Alaska Division of Insurance issued Bulletin B24-10 concerning the Division's expectations for all insurers authorized to operate in Alaska regarding the treatment of policyholders affected by recent storms.

See the full Bulletin on the Alaska Division of Insurance website.

The expectations are as follows:

Grace Periods

The Division directs carriers to provide relief to affected policyholders by offering an extension to premium grace periods of at least two weeks in order to allow continuing insurance coverage. Any consumers currently in a grace period or who enter a grace period in the next two weeks must be provided with two additional weeks to make premium payments. In conjunction with this effort, the Division will work with carriers to minimize the regulatory effects of such an extension, specifically financial review requirements. The extension of the grace period does not eliminate the obligation to pay the premium, but limits policy cancellation for late payment. Carriers are encouraged to work with policy holders in the collection of premiums.

It is possible that electronic payment methods may not be operating correctly in the immediate aftereffects of the landslide and floods as banks and other financial institutions are closed, without power or internet service. It is the Division's expectation that any problems with premium payment during the extended period would be resolved by the insurance company without a consumer complaint being filed.

Investigations of Claims

The Division reminds insurers that AS 21.36.125 requires insurers to acknowledge and act promptly on communications with consumers. AS 21.36.125 also requires a “reasonable investigation of all of the available information” prior to the refusal to pay a claim and that insurers must provide an explanation of the basis for denial of the claim or the offer of a settlement.

Dominant Cause of Loss

The Division would like to remind insurers and impacted consumers of Bulletin B 1817 regarding dominant cause of loss.