Unfair Claims Settlement Practices

Alaska law sets out a strict timetable for insurers to promptly settle claims. An insurer that fails to meet the requirements under the Unfair Claim Settlement Acts and Practices faces disciplinary action including the possibility of fines or revocation of the insurer’s license to sell insurance in Alaska.

If you suffer a loss, immediately contact your local producer or company representative. The division recommends that you keep a record of your contact with your producer throughout the claims process. Make certain that you keep track of the specific information (whom you talked to, when, what was discussed, etc.). Follow your verbal claim notification up with written notice.  Your insurer must acknowledge your claim notification within 10 working days.

Your company may acknowledge your claim by paying the claim, requesting additional information, or providing you information identifying the person responsible for handling your claim and information on how to contact that person.

Alaska law requires your insurance company to respond to your initial claim notification within 10 days and to each communication from you regarding your claim within 15 days of their receipt of your communication. Your insurer is expected to complete investigation of your claim within 30 working days. If the investigation cannot be completed within the time period (and the matter is not in litigation), your insurer must advise you in writing, explaining why, and the anticipated time to complete. Your insurer must update you every 45 days of any additional extensions required until the investigation of your claim is completed.