Alaska Life Insurance Policy Requirements

Alaska law imposes specific requirements on life insurance policies sold in the state under Title 21 of the Alaska Statutes. These requirements protect consumers and ensure policy standardization.

Free Look Period

Alaska provides a standard free look period for life insurance:

During the free look period, the policyholder can:

• Review the policy thoroughly
• Return it for a full refund of premiums paid
• No questions asked, no penalty charged
• No fees for exercising the free look right

Exam Tip: Alaska's 10-day free look is the standard period found in most states. Remember that replacement policies get a 30-day free look to allow for more careful consideration.

Incontestability Clause

Alaska requires a 2-year incontestability clause in all life insurance policies:

• After 2 years from issue, the insurer cannot contest the policy based on misstatements in the application
• Exceptions: Fraud, non-payment of premiums, or violation of policy conditions
• The clause protects beneficiaries from having claims denied due to application errors

Alaska Specific Rules

• Incontestability period begins from the issue date
• If policy lapses and is reinstated, a new 2-year period begins
• Applies to both individual and group life insurance policies

Suicide Clause

Alaska limits the suicide exclusion:

• Suicide exclusion cannot exceed 2 years from policy issue
• After 2 years, death by suicide is covered at full face value
• If policy is reinstated, a new 2-year period may apply
• Return of premiums is required if suicide occurs within exclusion period

Standard Policy Provisions

Alaska requires life insurance policies to include specific provisions:

Required Provisions

Grace Period Details

• 31 days minimum grace period for premium payments
• Coverage continues during grace period
• Policy cannot be canceled for non-payment until grace period expires
• Death benefits are paid minus any overdue premium if insured dies during grace period

Beneficiary Protections

Alaska has specific beneficiary protection laws:

Payment of Death Benefits

• Death benefits must be paid promptly upon valid claim
• Insurers must act in good faith to locate beneficiaries
• Interest accrues if payment is delayed beyond reasonable time

Unclaimed Benefits

If beneficiaries cannot be found:

• Death benefits are not forfeited
• Must be reported as unclaimed property
• Escheat to the State of Alaska
• Beneficiaries can claim from the state's unclaimed property division

Policy Delivery Requirements

Alaska requires:

• Policy delivered within reasonable time of issue
• Delivery must include policy summary
• Receipt should be obtained from policyholder
• Electronic delivery permitted with written consent