Free Alaska Property practice questions

Answer: D. $7,500, at $2,500 for each of the three violations

Alaska Stat. Sec. 21.09.260 caps the civil penalty for violating AS 21.09.250 at $2,500 for each violation, so three violations expose the insurer to at most $7,500. Because the cap runs per violation, it is not a single $2,500 total, and $10,000 is not the figure this section sets, whether read as a total or per violation. The same section also allows the director to suspend or revoke the insurer's license for such a violation, and it states that the violation does not invalidate the insurance contract.

Answer: B. A written notice of cancellation must be mailed to the named insured

Alaska bars an insurer from canceling a personal insurance policy unless a written cancellation notice is mailed to the named insured, with the timing and, for a named insured 70 or older, an optional designee set out in the paragraphs that follow. An oral confirmation by phone is not a written notice. In-person delivery by the agent is not the mailing the statute requires. The statute conditions cancellation on the mailed written notice and does not make it depend on approval by the director.

Answer: C. Yes, because the suspension fell within 180 days before the renewal

One of the two permitted grounds for canceling a personal auto policy in Alaska is a suspension or revocation of the license or registration of the named insured or certain household or regular drivers. For a renewal policy, the look-back covers its own policy period and the 180 days immediately before its effective date. A suspension about four months before the March 1 renewal is inside that window, so it qualifies even though it ended before the renewal began. The statute does not limit the look-back to the current period for a renewal, and it does not require any particular conviction behind the suspension.

Answer: C. Immunity from liability for defamation based on providing the information

Alaska Stat. Sec. 21.36.070(b) makes a person who gives the director information about a licensee's financial condition, or about an act or practice of a licensee, immune from liability for defamation. The subsection attaches no condition that the director later confirm the information, and it speaks to immunity rather than to keeping the person's identity confidential or paying any reward.

Answer: C. 120 days after the application was filed

Under AS 21.27.040(f), an application that the applicant fails to complete through inaction is considered withdrawn, and the withdrawal becomes effective 120 days after the application was filed. The period runs from the filing date, not from any notice the director sends, and the statute sets 120 days rather than 90 days or one year. Had the director begun administrative action on the application, withdrawal would instead take effect at the time and on the conditions set by an order under the licensing chapter.

Answer: C. The license may not be renewed, because it has been expired for two years or longer

Alaska Stat. Sec. 21.27.380(b) allows the director to reinstate an expired license for a person who still qualifies for it, but the same subsection bars renewal of a license that has been expired for two years or longer. At 26 months that bar applies, so continuing to qualify no longer opens the reinstatement route. That subsection provides no way for extra continuing education or a temporary license to overcome the two-year limit.

Answer: B. The order must state the period, and it may not exceed 12 months

Alaska Stat. Sec. 21.27.430(a) requires an order suspending a license to specify the period of suspension and limits that period to 12 months. An open-ended suspension with no stated period conflicts with the requirement to specify one, six months understates the ceiling, and the section provides no longer period for repeat violations.

Answer: D. Within 24 hours after receipt

A licensee who receives money in a fiduciary capacity must document it within 24 hours after receipt, in enough detail to show at least the date received, the payee's name and the amount. If the payment is in cash, the licensee must also give the payer a detailed receipt at the time of payment. Five days, 10 working days and 30 days each allow more time than the rule's 24-hour window.

Answer: A. Finality waited on the appellate ruling, and the insurer then had 30 days to pay

Under Alaska Stat. Sec. 21.09.150(b)(3), the director must, after a hearing, suspend or revoke the certificate of an insurer that does not pay, within 30 days of finality, a final judgment entered against it in Alaska. The same paragraph says an appealed judgment is not final until the appellate court determines it. So the clock did not start at the trial court judgment, and the period is 30 days, not 90. An appealed judgment is not exempt from this ground; it simply becomes final later.

Answer: D. $300,000

Alaska Stat. Sec. 21.09.090(b) bars the director from authorizing an insurer unless it makes and keeps, in trust in Alaska through the director, a deposit of cash or eligible securities of no less than $300,000 for the protection of its policyholders, or of its policyholders and creditors. The subsection lets the director accept substitutes: for a foreign insurer, a certificate showing a like deposit held in another state, and for an alien insurer, qualifying trust assets held in the United States. The figures $100,000, $500,000 and $1,000,000 are not the deposit amount the subsection sets.