The national Personal Automobile Policy guide covers the policy form itself: liability, medical payments, uninsured motorists, physical damage, duties after a loss, and the main exclusions. On the Alaska Casualty exam, the state questions focus on the rules around the policy: Alaska's at-fault system, the 50/100/25 compulsory minimums, the uninsured and underinsured motorist rules in AS 28.20.445 and AS 21.96.020, proof of financial responsibility, and the limits on cancelling a personal auto policy. This guide covers those Alaska rules with their citations.

Alaska is an at-fault state

An injured person in Alaska recovers from the at-fault driver's liability coverage, or sues that driver. When both sides share blame, Alaska applies pure comparative fault (AS 09.17.060). A claimant's damages are reduced by the claimant's own percentage of fault, and no percentage bars recovery. A driver 70% at fault can still collect 30% of their damages from the other driver.

Compulsory insurance and minimum limits

The owner or operator of a vehicle subject to registration must be insured under a complying motor vehicle liability policy when it is driven on a highway, vehicular way, or other public property (AS 28.22.011). The minimum limits (AS 28.22.101(d); AS 28.20.440(b)) are:

• $50,000 bodily injury per person
• $100,000 bodily injury per accident (two or more people)
• $25,000 property damage per accident

That's 50/100/25. Coverage must apply in the United States and Canada.

Related rules:

• Road-system exemption. The requirement does not apply to a vehicle driven only in a community not connected to the state highway system, if the operator has had no citation worth six or more points in the past five years (AS 28.22.011).
• Proof in the car. Drivers must carry proof of insurance and may show it on a mobile electronic device. Failing to have proof in your possession is an infraction with a $500 mandatory fine, but a person who later shows proof that was valid at the time of the citation cannot be convicted (AS 28.22.019).
• After an accident. Proof of insurance must be shown after any accident causing injury, death, or property damage over $501 (AS 28.22.021). It goes to the Division of Motor Vehicles within 15 days (AS 28.22.031). A driver who can't prove coverage loses the license for at least 90 days, or at least one year if there was a prior suspension within 10 years (AS 28.22.041).
• Binders. A binder issued while the policy is pending satisfies the policy requirement.
• Absolute liability. Once covered injury occurs, the insurer's liability for the required coverage is absolute. The insured's misstatements or policy violations don't defeat the injured person's claim (AS 28.20.440(f)).

Proof of financial responsibility for the future

Alaska's Motor Vehicle Safety Responsibility Act (AS 28.20) requires some drivers to file proof of financial responsibility for the future. Two common triggers:

• A driver convicted of a first DUI files proof for five years. The period is 10 years with one prior conviction, 20 years with two priors, and for as long as licensed with three or more (AS 28.20.230).
• After a suspension for failing to show insurance, proof is required for three years after the suspension ends (AS 28.22.061).

The proof can be an insurer's certificate of insurance (AS 28.20.410) or a surety bond (AS 28.20.470). Once an insurer has certified a policy, the coverage can't be cancelled until at least 10 days after a cancellation notice is filed with the department (AS 28.20.450). A person with more than 25 registered vehicles may qualify as a self-insurer (AS 28.20.400).

Uninsured and underinsured motorist coverage

• Included unless rejected. UM/UIM coverage at limits of at least 50/100/25 must be part of the policy unless the insured rejects it in writing (AS 28.20.445(e)(3); AS 21.96.020(e)). A rejection or a choice of lower limits by the named insured binds all insureds. Waived coverage need not be offered again at renewal unless the insured asks in writing.
• Limits offered. The insurer must offer UM/UIM limits equal to the insured's liability limits, plus optional higher limits up to $1,000,000 per person / $2,000,000 per accident (AS 21.96.020(c)).
• UIM trigger. UIM does not apply until all applicable liability limits are exhausted by payments, judgments, or settlements (AS 28.20.445(e)(1)).
• Excess. UM/UIM payments are excess over auto bodily injury, medical payments, and workers' compensation benefits.
• Anti-stacking. When several vehicles are insured under one policy, the most payable is the highest limit of any one coverage (AS 28.20.445(c)).
• Hit-and-run. When both owner and operator are unknown, UM requires physical contact. A vehicle that left the scene is presumed uninsured if the accident is reported within 24 hours (AS 28.20.445(f)).
• UM property damage covers only the insured vehicle, excludes loss of use, and carries a $250 deductible unless another deductible is offered (AS 28.20.445(g)).
• Other points. UM/UIM need not cover punitive damages. It does not apply while the insured occupies a household-owned vehicle not insured under the policy. Policies must state that they cover the insured as a pedestrian or bicyclist.

Other Alaska policy requirements

• Named driver exclusion. On the named insured's request, a household member or relative must be excluded (AS 28.20.440(l)). The policy then gives no coverage when that person drives.
• Permitted exclusions. The policy need not cover workers' compensation liability or damage to property owned by, rented to, or transported by the insured (AS 28.20.440(e)).
• Rental cars. If the policy has physical damage coverage, it must extend to vehicles rented in the U.S. or Canada. If the insured declines physical damage coverage, the insurer must offer it for rentals. Coverage bought from the rental company pays first (AS 21.96.020(f)).
• Short-term policy. Every auto liability insurer must also offer a policy of seven days or less (AS 21.96.020(g)).
• Arbitration costs (other than attorney and adjuster fees) are paid as the arbitrator decides.
• Total loss. A cash settlement is based on the cost of a comparable vehicle, including taxes, license fees, and transfer fees, less the deductible. If two local dealer quotes aren't available, the search area expands in 25-mile increments (3 AAC 26.080).
• Rideshare. A personal auto insurer may exclude coverage while the driver is logged onto a transportation network app or giving a prearranged ride (AS 21.96.018). The TNC's coverage must be at least 50/100/25 while the driver is logged on and waiting, and $1,000,000 during a prearranged ride (AS 28.23.050).

Residual market

A driver who can't get coverage voluntarily applies to the automobile assigned risk plan, which every authorized auto insurer must join (AS 28.20.580; AS 21.39.150). Appeals of plan rulings go to the commissioner of Commerce, Community, and Economic Development. A cancellation (other than for nonpayment) or nonrenewal notice must tell the insured about possible assigned risk plan eligibility (AS 21.36.250).

Cancellation, nonrenewal, and rating

Personal automobile insurance covers private passenger autos, plus pickups and other four-wheel vehicles with a load capacity of 1,500 pounds or less that are not used in business or for hire (AS 21.36.310).

• First 60 days. During the first 60 days of a new policy, the reason restrictions don't apply.
• After 60 days. An auto policy may be cancelled mid-term only for nonpayment or suspension or revocation of a covered driver's license or registration (AS 21.36.210(a)). For a renewal, a suspension within the 180 days before the effective date also counts. An accident is not a mid-term cancellation reason.
• Notice periods (insured under 70) (AS 21.36.220):

• Not a cancellation. Adding a deductible of $100 or less to physical damage coverage other than collision.
• Rate changes. Rates may change no more often than every six months. A premium increase must apply to everyone in the same class and may take effect only at renewal. A surcharge for a moving violation requires a conviction or no contest plea. Notice of a surcharge, with the reason and appeal rights, is due 20 days ahead (AS 21.36.290, .305).

Common exam traps

• Alaska is at-fault with pure comparative fault. No percentage of fault bars recovery.
• The minimums are 50/100/25. The 25 is property damage.
• UM/UIM is included unless rejected in writing. It is not merely an optional offer.
• Alaska's statutes speak of proof of financial responsibility for the future and a certificate of insurance.
• An accident is not a mid-term cancellation reason after the first 60 days.
• Stacking is limited to the highest single limit under one policy.