Alaska Property Insurance Laws Flashcard

Front

What does property insurance cover according to AS 21.12.060?

Back

Loss or damage to real or personal property caused by covered perils

Answer explanation

Property insurance covers loss or damage to real or personal property caused by covered perils, making this the correct choice. The other options do not pertain to the scope of property insurance.

Front

Which type of insurance guarantees that one party will fulfill obligations to another?

Back

Surety insurance

Answer explanation

Surety insurance guarantees that one party will fulfill obligations to another, typically in construction or contractual agreements, ensuring that the obligations are met even if the primary party defaults.

Front

What is an example of marine, wet marine, and transportation insurance?

Back

An ocean marine policy covering a shipment of seafood

Answer explanation

An ocean marine policy covering a shipment of seafood is a clear example of marine insurance, as it specifically protects goods transported over water, fitting the criteria for marine and transportation insurance.

Front

What is surplus lines insurance?

Back

Coverage from nonadmitted insurers when unavailable from admitted carriers

Answer explanation

Surplus lines insurance refers to coverage provided by nonadmitted insurers when the required insurance is not available from admitted carriers, making it essential for unique or high-risk situations.

Front

What is the consequence of nonpayment of premium according to AS 21.36.210–.310?

Back

Cancellation after required notice

Answer explanation

According to AS 21.36.210–.310, nonpayment of premium results in cancellation of the policy after the required notice is given, ensuring the policyholder is informed before cancellation.

Front

What does personal property insurance cover?

Back

Movable property owned by an individual

Answer explanation

Personal property insurance covers movable property owned by an individual, such as furniture, electronics, and personal belongings, protecting them against risks like theft or damage.

Front

What is the purpose of a binder in insurance?

Back

To provide temporary coverage until a formal policy is issued

Answer explanation

A binder in insurance serves to provide temporary coverage until a formal policy is issued, ensuring that the insured is protected during the interim period.

Front

What must an insurer provide for personal policy cancellation?

Back

Written notice within the required timeline

Answer explanation

An insurer must provide written notice within the required timeline for personal policy cancellation. This ensures that the policyholder is informed and can take necessary actions.

Front

What is required for commercial policy nonrenewal?

Back

45 days’ notice for nonrenewal

Answer explanation

For commercial policy nonrenewal, insurers must provide 45 days' notice. This ensures policyholders are informed in advance, unlike automatic renewals or immediate cancellations without notice.

Front

What happens if an insurer fails to send a renewal notice within the statutory timeframes?

Back

The policy may automatically renew

Answer explanation

If an insurer fails to send a renewal notice within the statutory timeframes, the policy may automatically renew, ensuring continued coverage without interruption.