Alaska Division of Insurance

The Alaska Division of Insurance is the state agency responsible for regulating the Property & Casualty insurance industry in Alaska. The Division operates as part of the larger Department of Commerce, Community, and Economic Development, ensuring fair insurance practices and protecting Alaska consumers.

Organizational Structure

The Director of Insurance

The Director of the Division of Insurance is:

• Appointed by the Governor of Alaska
• Confirmed by the Alaska Legislature
• Serves at the pleasure of the Governor
• Responsible for enforcing Alaska Statutes Title 21 (Insurance Code)
• Authorized to adopt regulations, review rates, investigate violations, and discipline licensees

Division Location & Contact

Main Office (Anchorage)

• Address: 550 W 7th Avenue, Suite 1560, Anchorage, AK 99501
• Phone: (907) 269-7900
• Fax: (907) 269-7910
• Email: insurance@alaska.gov
• Website: commerce.alaska.gov/web/ins

Juneau Office

• Address: P.O. Box 110805, Juneau, AK 99811-0805
• Phone: (907) 465-2515

Consumer Services & Licensing

• Toll-Free: (800) 467-8725
• Email: insurancelicensing@alaska.gov
• Hours: Monday-Friday, 8:00 AM - 4:30 PM Alaska Time

Exam Tip: Know that the Director is appointed by the Governor (not elected) and that Alaska's insurance code is in Title 21 of Alaska Statutes.

Director Powers and Duties

The Director of Insurance has broad authority to regulate the insurance industry:

Examination Authority

The Director may examine:

• Insurance companies - Financial condition, market conduct, claims practices
• Producers - Records, transactions, trust accounts
• Adjusters and other licensees - Compliance with laws and regulations

Examinations can be:

• Routine - Scheduled periodic reviews
• For cause - Based on complaints or suspicious activity
• Financial - Solvency and reserve adequacy
• Market conduct - Sales practices, claims handling, consumer treatment

Alaska Insurance Code

Alaska Statutes Title 21

The primary source of Alaska insurance law is Alaska Statutes Title 21, which covers:

Alaska Administrative Code

Regulations adopted by the Division are found in 3 AAC (Alaska Administrative Code):

• 3 AAC 21 - Producer licensing regulations
• 3 AAC 23 - Rate and form filing requirements
• 3 AAC 25 - Consumer protection provisions
• 3 AAC 26 - Insurance company regulations

Study Strategy: You don't need to memorize statute numbers, but understand what topics Alaska law covers and where to find information.

Rate Regulation System

Alaska uses a file-and-use system for most property and casualty insurance rates:

File-and-Use Process

1. Insurers file rates with the Division
2. Rates can be used immediately upon filing (no prior approval required)
3. Division reviews rates for compliance within 30-60 days
4. Director may disapprove rates if found:
   • Excessive (unreasonably high)
   • Inadequate (insufficient to be actuarially sound)
   • Unfairly discriminatory (not based on sound actuarial principles)

Exceptions: Prior Approval Required

Certain lines require prior approval before use:

• Workers' compensation insurance rates
• Medical professional liability rates
• Rates for residual market mechanisms

Rate Standards

Alaska law requires rates to be:

Exam Tip: Alaska's file-and-use system allows immediate use of rates while maintaining regulatory oversight. This balances market flexibility with consumer protection.

Consumer Protection

Consumer Services Division

The Division's Consumer Services section handles:

• Complaints - Investigate consumer complaints against insurers/producers
• Inquiries - Answer questions about coverage, rates, claims
• Education - Provide guides and resources
• Mediation - Facilitate dispute resolution

Filing a Complaint

Alaska consumers can file complaints:

1. Online - Through Division website
2. Phone - (800) 467-8725 toll-free
3. Mail - Written complaint to Anchorage office
4. Email - insurance@alaska.gov

Required Information:

• Consumer's contact information
• Insurance company/producer name
• Policy number
• Description of issue
• Supporting documentation

Division Response Process

Market Conduct & Enforcement

Market Conduct Examinations

The Division conducts periodic examinations of insurers to ensure compliance with:

• Fair claims handling practices
• Proper policy issuance and cancellation procedures
• Accurate rate application
• Timely premium accounting
• Proper producer supervision
• Consumer protection laws

Enforcement Actions

The Director may take action against insurers or producers who violate Alaska law:

Civil Penalties

• Per violation: Up to $25,000
• Continuing violations: Up to $10,000 per day
• Willful violations: Enhanced penalties
• Restitution: May be ordered to compensate harmed consumers

Alaska's Insurance Marketplace

Market Characteristics

Alaska's insurance market is unique due to:

Licensed Insurers

As of 2026, Alaska has approximately:

• 200+ property and casualty insurers licensed
• 50+ major carriers writing significant premium
• 15-20 dominant carriers in most markets
• Limited competition in rural areas

Producer Landscape

• 5,000+ licensed insurance producers statewide
• 60% located in Anchorage or Mat-Su Valley
• Growing demand for producers in underserved areas
• Career opportunity in Alaska's expanding insurance market

Division Responsibilities Summary

Core Functions

1. Licensing & Regulation

   • License insurance companies and producers
   • Monitor financial solvency of insurers
   • Review policy forms for compliance

2. Rate & Form Review

   • Examine rate filings for appropriateness
   • Approve/disapprove policy forms
   • Investigate rate discrimination complaints

3. Consumer Protection

   • Handle consumer complaints and inquiries
   • Conduct market conduct examinations
   • Educate consumers about insurance

4. Enforcement

   • Investigate violations of insurance law
   • Impose penalties and discipline
   • Prosecute insurance fraud

5. Industry Oversight

   • Monitor market trends and competition
   • Coordinate with NAIC (National Association of Insurance Commissioners)
   • Maintain insurer financial surveillance

Key Concept: The Division's primary mission is protecting Alaska consumers while fostering a competitive, solvent insurance marketplace.