Unfair Trade Practices

Alaska statutes prohibit certain actions on the part of producers, insurers, and representatives of insurers. The following are some of the most common unfair trade practices.

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.

See AS 21.36.