Alaska Casualty Insurance Laws Flashcard

Front

What is the primary focus of casualty insurance as defined in Alaska law?

Back

Liability and non-property coverages

Answer explanation

The primary focus of casualty insurance in Alaska law is on liability and non-property coverages, which protect against legal liabilities and do not involve physical property, distinguishing it from other types of insurance.

Front

Which type of insurance is placed with non-admitted insurers through licensed brokers?

Back

Surplus lines insurance

Answer explanation

Surplus lines insurance is specifically designed for risks that non-admitted insurers cover, and it is placed through licensed brokers. This distinguishes it from other types of insurance listed.

Front

Binder in insurance

Back

A temporary insurance contract

Answer explanation

A binder is a temporary insurance contract that provides immediate coverage until a formal policy is issued. It is not a permanent policy, a claim document, or a type of reinsurance.

Front

Under what condition can an insurer cancel a personal auto policy with a 10-day notice?

Back

Nonpayment of premium

Answer explanation

An insurer can cancel a personal auto policy with a 10-day notice for nonpayment of premium. This is a standard condition that allows insurers to terminate coverage if the insured fails to pay their premiums.

Front

What is the required minimum bodily injury coverage per person under Alaska's auto insurance laws?

Back

$50,000

Answer explanation

Under Alaska's auto insurance laws, the required minimum bodily injury coverage per person is $50,000. This ensures that individuals injured in an accident have adequate financial protection.

Front

What must be offered to insureds to protect them from drivers with no or insufficient insurance?

Back

Uninsured and underinsured motorists coverage

Answer explanation

Uninsured and underinsured motorists coverage is specifically designed to protect insureds from drivers who lack sufficient insurance, ensuring they are covered in case of an accident with such drivers.

Front

What is the purpose of the Automobile Assigned Risk Plan in Alaska?

Back

To provide coverage for high-risk drivers

Answer explanation

The Automobile Assigned Risk Plan in Alaska is designed to provide coverage for high-risk drivers who may have difficulty obtaining insurance through standard means, ensuring they have access to necessary auto insurance.

Front

What is the role of a surplus lines broker?

Back

To place coverage with non-admitted insurers

Answer explanation

A surplus lines broker specializes in placing coverage with non-admitted insurers, which are not licensed in the state but can provide insurance for unique or high-risk situations. This distinguishes them from other insurance roles.

Front

What is the consequence of failing to pay an insurance premium on time?

Back

Policy cancellation with notice

Answer explanation

Failing to pay an insurance premium on time typically results in policy cancellation with notice. Insurers usually provide a grace period, but if payment is not made, the policy may be terminated.

Front

What is the primary purpose of Alaska's Motor Vehicle Safety Responsibility Act?

Back

To set financial responsibility requirements for vehicle owners

Answer explanation

The primary purpose of Alaska's Motor Vehicle Safety Responsibility Act is to set financial responsibility requirements for vehicle owners, ensuring they can cover damages in case of accidents.