The national Property Insurance Basics guide covers the core concepts: perils and hazards, named versus open perils, actual cash value versus replacement cost, coinsurance, and the parts of a property policy. Alaska adds statutory definitions and contract rules in AS 21.12, AS 21.42, and AS 21.60. The Alaska Property exam asks about them alongside its heavy regulation section.

How Alaska classifies property coverage

• Property insurance covers real or personal property against loss or damage from any hazard, including consequential loss from that damage. It does not include noncontractual legal liability or title insurance (AS 21.12.060).
• Marine insurance (AS 21.12.090) includes:
  • jewelry, precious stones, and precious metals, whether or not in transit
  • instrumentalities of transportation and communication, such as bridges and tunnels, but not buildings or their furnishings
• Wet marine and transportation insurance is narrower. It covers vessels and hulls (such as a fishing vessel's hull), marine builder's risk, protection and indemnity, freight, and goods in import, export, or coastwise transit.
• Inland marine covers movable property and property in transit over land.
• The property line of authority covers direct or consequential loss of or damage to property of every kind (AS 21.27.115(3)).

Binders

A binder is temporary evidence of coverage until the policy is issued (AS 21.42.240).

• It may be oral or written.
• It includes the usual policy terms and any endorsements it names, except where the binder clearly says otherwise.
• It ends when the policy is issued or after 90 days from its effective date, whichever is shorter.
• It may be extended past 90 days only with the insurer's written approval.
• The binder statute does not apply to life or health insurance.

Valuation rules

• Over-insurance is prohibited. No one may knowingly issue or accept property insurance that results in coverage against the same hazard above the property's fair value (AS 21.60.010).
• Fair value means replacement cost less applicable depreciation, which is essentially actual cash value.
• Replacement cost coverage is the authorized exception. By special provision or endorsement, an insurer may cover the cost of repair or replacement without deducting depreciation (AS 21.60.020). Replacement cost therefore usually pays more than ACV.
• No labor depreciation. In residential property policies, labor costs may not be depreciated. The only exception is an optional stand-alone endorsement that comes with a proportionate premium reduction (AS 21.60.030).

Application statements

• Statements in a property application are representations, not warranties (AS 21.42.110).
• A misstatement defeats recovery only if it was fraudulent, material to the risk, or the insurer in good faith would not have issued the policy on the same terms.

Cancellation basics

When the insurer cancels, the unearned premium is returned pro rata. When the insured cancels, the insurer may keep a cancellation fee of no more than 7.5% of unearned premium, if the fee is stated in the policy. The refund is due within 45 days (AS 21.36.255).

Notice periods for personal and commercial policies are in the Insurance Regulation guide.

Common exam traps

• Title insurance is not property insurance under AS 21.12.060.
• Jewelry is marine insurance in Alaska even when it isn't moving.
• Binders last at most 90 days unless the insurer approves an extension in writing.
• Fair value is replacement cost less depreciation. Replacement cost coverage is the permitted exception to the over-insurance rule.