Unfair Trade Practices

Alaska Statutes prohibit certain actions on the part of producers, insurers, and representatives of insurers.   Among the most common type of unfair trade practices are:

• Rebating – A producer who offers something of value to an applicant in exchange for their business or agrees to accept a reduced commission in exchange for an application may be guilty of rebating.
• Unfair Discrimination – Treating similar applicants or policyholders differently is unfair discrimination.   For example, unfair discrimination does not exist if an insurer refuses to issue policies to all drivers with a conviction for driving while intoxicated.   However, unfair discrimination does exist if an insurer issues policies to some drivers with a conviction for driving while intoxicated, but declines to issue policies to other drivers who also have a conviction for driving while intoxicated.
• Antitying – The sale of insurance may not be tied to another transaction.   For example, your lender may not make the granting of your loan contingent upon your purchase of insurance from a particular agent or company.

If you believe you have encountered any of these practices, or are uncomfortable with any transaction with a producer or insurer, contact the Division of Insurance for assistance.