An Insurer Has 10 Days to Acknowledge Receipt of Your Claim

An insurer must provide you with a written acknowledgement of the receipt of your claim, including the name and contact information of the person who will be handling your claim, within 10 working days of receiving your claim.

See 3 AAC 26.040(a)(1) and (b)(1).

An Insurer Normally Has 30 Days to Complete Your Claim

An insurer must complete its investigation of your claim within 30 working days, unless the claim cannot be reasonably completed using due diligence.

See 3 AAC 26.050(a)(7).

An Insurer Must Provide Written Explanation of the Value of Damages

If you have a property or motor vehicle claim, the insurer must provide you with a reasonable written explanation of the valuation of damages to the property/motor vehicle.

See 3 AAC 26.080(a)(2), 3 AAC 26.080(b)(1), 3 AAC 26.090(a)(2), 3 AAC 26.090(b)(1).

An Insurer Can’t Deny a Claim Because A Secondary Factor is Not Covered

An insurer may not deny your claim if a risk, hazard, or contingency insured against is the dominant cause of the loss and the denial occurs because another risk, hazard, or contingency excluded under the policy is also in a chain of causes but operates on a secondary basis.

See AS 21.36.096.

When a Repair Contractor or Facility is Chosen For You, Repair Work Must be Guaranteed

If a person adjusting or settling your claim chooses to have your property/motor vehicle repaired by a specific contractor or facility, that person shall guarantee the repairs and cause the damaged property/motor vehicles to be restored to its condition before the loss, at no additional cost to the claimant, and cause the repairs to be completed within a reasonable time.

See 3 AAC 26.080(f), 3 AAC 26.090(f).

First-party claims involve claims for which you are seeking payment from your own insurance policy.

If a First-Party Claim is Not in Dispute, an Insurer Must Pay Within 30 Working Days

For a first-party claim, if the claim or a portion of the claim is not in dispute, your insurer must pay you the portion not in dispute within 30 working days of receiving the properly executed statement of claim, proof of loss, or other acceptable evidence of loss.

See 3 AAC 26.070(a)(2).

In a First-Party Claim, an Insurer Must Disclose All Available Benefits

For a first-party claim, an insurer must disclose to you all relevant benefits and other provisions of coverage under which your claim may be covered.

See 3 AAC 26.060(1).

First-Party Claims for Total Loss of a Vehicle

For a first-party claim, if your motor vehicle is a total loss and your policy coverage provides for the adjustment of a total loss on the basis of actual cash value or replacement  with a vehicle of like kind and quality,  the insurer must utilize a settlement method that either 1) offers a comparable and available replacement vehicle including applicable taxes, license fees, destination or delivery charges and other fees incident to the transfer of ownership at no cost to you other than your deductable or 2) makes a cash settlement based on the actual cost to purchase a comparable vehicle.

See 3 AAC 26.080(a)(1).

First-Party Claims for Total Loss of Property

For a first-party claim, if your property claim is a total loss and your policy coverage provides for the adjustment of a total loss on the basis of actual cash value or replacement with other property of like kind and quality, the insurer must utilize a settlement method that either 1) offers a comparable and available replacement property including all applicable taxes, charges, and other fees incident to the transfer of ownership at no cost to you other than your deductable or 2) makes a cash settlement based on the actual cost of comparable property.

See 3 AAC 26.090(a)(1).

The appraisal clause in your insurance policy provides a means of resolving differences between you and the insurance company regarding the value of your property.

Appraisal Process

Alaska law requires that disputes with your insurance company about the value of a property loss you suffer be settled using an appraisal process.

In an appraisal, you and your insurance company each select an appraiser to represent you. The two appraisers then select an impartial umpire.

The two appraisers separately state the value they place on your loss. If the appraisers agree on the amount of your loss, the agreed upon amount will be binding on you and your insurance company.

If the two appraisers fail to agree on the amount of your loss, then they are required to promptly submit their differences to the umpire. A decision agreed to by one of the appraisers and the umpire will be binding on you and your insurance company.

Expenses

You and your insurance company each pay the expenses for your own appraiser. The umpire determines who is responsible for paying all other expenses.

Alaska is unique in that the Legislature has provided by statute for an award of partial attorney’s fees to a prevailing party in a lawsuit. This statute is implemented under Alaska Rules of Civil Procedures, Rule 82. The amount of attorney’s fees awarded is set out in a schedule in the rule.

If you are sued and an injured third party obtains a judgment against you in an amount that exceeds the limit of liability of your policy, you may be responsible for paying part of the Alaska Civil Rule 82 attorney’s fees and costs that are awarded by the court. The amount of Civil Rule 82 costs and fees you may be responsible for paying is calculated based upon the amount of the judgment in excess of the stated limit of liability in your policy.

Simply put, your insurance company may not pay all Alaska Civil Rule 82 attorney’s fees in a lawsuit filed against you. You may be required to pay part of these attorney fees without the assistance of your insurer.