Alaska Personal Lines Insurance License Exam — All Questions

What are the minimum auto liability limits a personal auto policy must carry to satisfy Alaska's financial-responsibility law?

• a.$15,000 per person / $30,000 per accident bodily injury and $5,000 property damage
• b.$50,000 per person / $100,000 per accident bodily injury and $25,000 property damage✓
• c.$50,000 per person / $100,000 per accident bodily injury and $50,000 property damage
• d.$30,000 per person / $60,000 per accident bodily injury and $25,000 property damage

Alaska sets minimum auto liability limits of 50/100/25 — that is, $50,000 per person / $100,000 per accident for bodily injury, and $25,000 for property damage. Producers should quote at least these limits and offer higher coverage. Source: Alaska DOI (https://www.commerce.alaska.gov/web/ins/). Verify current figures with the Alaska DOI before advising a client.

How does Alaska handle liability for auto accidents?

• a.It is a pure no-fault state; each driver's own insurer pays regardless of fault
• b.It is an add-on no-fault state requiring mandatory PIP on every policy
• c.It is a traditional at-fault (tort) state; the at-fault driver is responsible for the other party's injuries and damage✓
• d.It bars all lawsuits between drivers and routes claims through a state fund

Alaska is a traditional at-fault (tort) state: the driver responsible for a crash is liable for the other party's injuries and property damage, which is why liability limits matter. It does not use a no-fault/PIP system. Source: Alaska DOI (https://www.commerce.alaska.gov/web/ins/).

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in Alaska?

• a.An insurer may cancel any personal policy at any time for any reason with no notice
• b.Only the policyholder may ever cancel; insurers can never cancel mid-term
• c.There are no notice rules; cancellation is governed solely by the contract
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the Alaska Division of Insurance✓

Alaska, like other states, restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. The exact number of days varies by reason and line — verify the current Alaska notice periods with the Alaska Division of Insurance.

With respect to uninsured/underinsured motorist (UM/UIM) coverage on a Alaska personal auto policy, which is generally true?

• a.UM/UIM is prohibited in the state
• b.UM/UIM automatically replaces liability coverage
• c.Insurers must make UM/UIM coverage available; the insured may typically accept, reject, or adjust it in writing✓
• d.UM/UIM is only available to commercial fleets

State auto laws generally require insurers to offer uninsured/underinsured motorist coverage; the applicant may accept it or reject/adjust it, often with a signed election. UM/UIM protects the insured when the at-fault driver has no or insufficient coverage — important in an at-fault state like Alaska. Confirm the current UM/UIM rules with the Alaska Division of Insurance.

Which best describes the body that writes and enforces Alaska's insurance regulations affecting personal lines policies?

• a.The Alaska Division of Insurance, which sits within the Alaska Department of Commerce, Community, and Economic Development✓
• b.A private trade association of insurers with no government authority
• c.The federal Department of Insurance in Washington, D.C.
• d.The county clerk's office where the policy is issued

Insurance in Alaska is regulated at the state level by the Alaska Division of Insurance. There is no federal department of insurance; each state (including Alaska) supervises its own market, licenses producers, and enforces cancellation, rating, and coverage rules. Source: Alaska DOI (https://www.commerce.alaska.gov/web/ins/).