Alaska Property & Casualty Insurance License Exam — All Questions

What are Alaska's minimum auto liability limits for bodily injury (per person / per accident) and property damage?

• a.$10,000 / $20,000 / $10,000
• b.$50,000 / $100,000 / $25,000✓
• c.$100,000 / $300,000 / $50,000
• d.There is no minimum; auto liability coverage is optional

Under Alaska Statute 28.22.101, Alaska's minimum auto liability limits are $50,000 per person and $100,000 per accident for bodily injury, plus $25,000 for property damage (written 50/100/25). Always verify current figures with the Alaska Division of Insurance.

For settling auto injury claims, Alaska follows which system?

• a.A tort ('at-fault') system in which the at-fault driver's liability coverage pays the other party✓
• b.A pure no-fault system in which each driver's own insurer always pays regardless of fault
• c.A system with no financial-responsibility requirement of any kind
• d.A federal single-payer auto injury system

Alaska is a tort ('at-fault') state, not a no-fault state; the liable driver's insurance pays for the other party's injuries and damage. This determines how injury claims are paid in Alaska.

Under Alaska law, when an insurer cancels or does not renew a personal auto or homeowners policy, it must generally:

• a.Give no notice, because policies simply end at expiration
• b.Refund triple the premium as a statutory penalty
• c.Provide the policyholder advance written notice stating the reason, within the period fixed by state law✓
• d.Obtain the policyholder's written consent before it may nonrenew

Alaska regulates midterm cancellation and nonrenewal of personal-lines policies. Insurers must give advance written notice stating the reason within the number of days set by state law (shorter for nonpayment, longer for other reasons). Verify the exact notice periods with the Alaska Division of Insurance.

A property owner in Alaska needs coverage on a one-to-four-family dwelling that is rented to tenants (not owner-occupied). Which policy is typically appropriate?

• a.An HO-3 homeowners policy, which fits any dwelling
• b.A Dwelling (DP) policy, which is designed for rental or non-owner-occupied dwellings✓
• c.A personal auto policy endorsement
• d.A commercial crime policy

Homeowners (HO) forms require owner-occupancy. For a rental or non-owner-occupied dwelling, a Dwelling Property (DP) policy is the standard product in Alaska and nationwide. This national concept is applied to Alaska risks on the exam.