About Alaska Insurance Laws, Health Insurance and Regulations…
Alaska is home to stringent insurance regulations that are designed to protect residents from malicious business practices and ensure that Alaska insurance companies are able to operate effectively in the state. All insurance regulations are enforced by the Alaska Department of Insurance. Insurers found guilty of breaking regulations face serious penalties. These penalties can extend to consumers if they are found guilty of committing insurance fraud. Federal regulations are enforced alongside those imposed by the state government.
Alaska auto insurance in mandatory for all vehicles that are operated on the road. Drivers are required to carry coverage, which is advised to be comprehensive enough to handle a wide range of incidents. The minimum level of coverage any driver can carry accounts for $50,000 for injury or death in any one accident, $100,000 for injury or death of two or more people in any one accident, and $25,000 for damage to property. Failure to comply with the state’s auto insurance requirements will result in the suspension of the violator’s driver’s license.
Minimum Liability Limits for Alaska Auto Insurance: $50,000/$100,000 Bodily Injury and $25,000 Property Damage
Drivers are not required to carry liability insurance coverage for their vehicles. The only exception to this rule concerns drivers that have received a traffic citation for 6 points or more within the last 5 years. These drivers are required by state law to carry liability insurance coverage.
As in other states in the U.S., Alaska regulates its own property insurance industry. Regulations are mainly concerned with governing the industry from a business standpoint and protect consumers from malicious practices. Residents of Alaska are not required by the state to obtain any kind of property insurance policies. The Alaska Insurance Department does advise, however, that homeowners purchase insurance policies that will help protect them and their homes from natural disasters. There are various types of homeowners insurance policies available throughout the state, all of which meet with the standards of the Alaskan government.
Alaska Health insurance is not required in the state, but the federal government will require American citizens to purchase and maintain health insurance policies by 2014, per the Affordable Care Act. The state Department of Insurance regulates the Alaska health insurance industry meticulously, but has been criticized in the past for having a lackluster rate review process. Regulators are tasked with reviewing the rate increase proposals coming from the state’s insurance companies. Typically, regulators are meant to determine whether these rates proposals are justified or excessive. In the past, regulators have been required to evaluate these proposals extensively, leading to some unrest amongst residents.
Alaska has, thus far, refused all federal funding that has been offered for the development of a state-run health insurance exchange. The state is among 29 others in the country that are opposed to the Affordable Care Act. As such, Alaska is unwilling to comply with the federal health care law. The state government has determined that the burden of a health insurance exchange will rest with the federal government.
Alaska Insurance Resources:
Alaska Insurance Commissioner: Lori Wing-Heier, Director
Alaska Department of Insurance Website: http://commerce.alaska.gov/ins/
Alaska Insurance Licensing Info: http://commerce.alaska.gov/ins/Insurance/licensing.html
File Insurance Complaint: http://commerce.alaska.gov/ins/Insurance/filingAComplaint.html