4.2 Alaska Privacy Laws and Regulatory Compliance

Alaska Property & Casualty Insurance State

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1 Standalone Coverage Map

Standalone Coverage Map

2 Introduction: Alaska Property & Casualty Insurance Exam Overview

Alaska Property & Casualty Exam Overview

3 National Portion: Insurance Fundamentals

1.1 Risk, Hazards, Perils, and the Law of Large Numbers 1.2 Insurable Interest, Indemnity, and Other Insurance Principles 1.3 Insurance Contract Law and Elements 1.4 Policy Structure: Declarations, Insuring Agreement, Conditions, Exclusions 1.5 Parties, Agents vs. Brokers, and Authority

4 National Portion: Property Insurance Concepts

2.1 Causes of Loss / Named-Peril vs. Open-Peril 2.2 Valuation: ACV, Replacement Cost, and Functional Value 2.3 Coinsurance and the Coinsurance Formula 2.4 Deductibles, Limits, and Loss Settlement 2.5 Common Property Policy Conditions and Clauses

5 National Portion: Dwelling Policies (DP)

3.1 Dwelling Policy Forms DP-1, DP-2, DP-3 3.2 Dwelling Coverages A-E and Other Coverages 3.3 Dwelling Perils, Conditions, and Endorsements 3.4 Mobile Home and Specialized Dwelling Coverage

6 National Portion: Homeowners Policies - Forms & Section I

Homeowners Forms HO-2 through HO-8 and Eligibility Section I Coverages A-D and Additional Coverages Section I Perils Insured Against and Exclusions Replacement Cost vs. ACV and Loss Settlement in Homeowners

7 National Portion: Homeowners Policies - Section II & Endorsements

Section II Coverages E (Liability) and F (Medical Payments) Homeowners Conditions and Duties After Loss Common Homeowners Endorsements

8 National Portion: Personal Auto Policy - Liability & Injury

6.1 Personal Auto Policy Structure and Eligibility 6.2 Part A Liability and Supplementary Payments 6.3 Part B Medical Payments 6.4 Part C Uninsured/Underinsured Motorists

9 National Portion: Personal Auto Policy - Physical Damage & Duties

7.1 Part D Coverage for Damage to Your Auto 7.2 Exclusions and Part E Duties After an Accident 7.3 Part F General Provisions, Endorsements, and No-Fault Concepts

10 National Portion: Liability Insurance Concepts

8.1 Negligence, Torts, and Legal Liability 8.2 Defenses, Damages, and Vicarious Liability 8.3 Occurrence vs. Claims-Made Triggers 8.4 Bodily Injury, Property Damage, and Personal/Advertising Injury

11 National Portion: Commercial Property Insurance

9.1 Commercial Package Policy Structure and Common Policy Conditions 9.2 Building and Personal Property Coverage Form (BPP) 9.3 Causes of Loss Forms (Basic, Broad, Special) 9.4 Business Income and Extra Expense 9.5 Commercial Property Endorsements and the BOP

12 National Portion: Commercial General Liability - Coverages

10.1 CGL Coverage A: Bodily Injury and Property Damage Liability 10.2 CGL Coverage B: Personal and Advertising Injury, Coverage C: Medical Payments 10.3 Who Is an Insured and Supplementary Payments

13 National Portion: Commercial General Liability - Limits, Triggers & Exclusions

11.1 CGL Limits of Insurance and Aggregates 11.2 Occurrence vs. Claims-Made CGL and Retroactive Dates 11.3 Key CGL Exclusions and Endorsements

14 National Portion: Commercial Auto Insurance

12.1 Business Auto Coverage Form and Covered Auto Symbols 12.2 Commercial Auto Liability and Physical Damage 12.3 Motor Carrier / Trucking and MCS-90 12.4 Garage Coverage Form and Garagekeepers 12.5 Commercial Auto Endorsements

15 National Portion: Workers Compensation

13.1 Workers Compensation Statutory Background and Benefits 13.2 Part One (Workers Comp) and Part Two (Employers Liability) 13.3 Premium Basis, Experience Modification, and Classification 13.4 Other States, USL&H, and Federal Acts 13.5 Workers Comp Exclusions and Endorsements

16 National Portion: Other Commercial Lines - BOP, Crime & Marine

14.1 Businessowners Policy (BOP) in Depth 14.2 Crime and Fidelity Coverage 14.3 Inland Marine and Nationwide Marine Definition 14.4 Ocean Marine Coverages (Hull, Cargo, Freight, P&I)

17 National Portion: Other Commercial Lines - Specialty & Professional

15.1 Farm and Agricultural Coverage 15.2 Commercial Umbrella and Excess Liability 15.3 Professional Liability and Errors & Omissions 15.4 Directors & Officers and Employment Practices Liability

18 National Portion: Other Commercial Lines - Surety, Flood & Specialty

16.1 Surety and Fidelity Bonds 16.2 National Flood Insurance Program (NFIP) 16.3 Cyber, Aviation, and Other Specialty Lines

19 National Portion: Insurance Regulation & Market Conduct

17.1 State Regulation, Licensing, and the McCarran-Ferguson Act 17.2 Rates, Forms, Solvency, and Guaranty Associations 17.3 Producer Authority, Fiduciary Duty, and Company Operations

20 National Portion: Ethics & Unfair Trade Practices

18.1 Unfair Trade Practices and Unfair Claims Settlement 18.2 Producer Ethics, Errors & Omissions Exposure, and Fiduciary Conduct 18.3 Privacy, Fraud, and Consumer Protection

21 Chapter 1: Alaska P&C Insurance Regulation & Licensing

1.1 Alaska Division of Insurance 1.2 Alaska P&C Producer Licensing Requirements 1.3 Alaska Producer Duties and Responsibilities

22 Chapter 2: Alaska Property Insurance

2.1 Alaska Homeowners Insurance 2.2 Alaska Property Insurance Policy Provisions

23 Chapter 3: Alaska Auto & Casualty Insurance

3.1 Alaska Auto Insurance Requirements 3.2 Alaska Commercial Liability Insurance

24 Chapter 4: Alaska Ethics & Professional Conduct

4.1 Alaska Ethical Standards for Insurance Producers 4.2 Alaska Privacy Laws and Regulatory Compliance

4.2 Alaska Privacy Laws and Regulatory Compliance

Key Takeaways Explain This Topic AI

Alaska producers must comply with both federal (GLBA) and state privacy requirements for nonpublic personal information

Producers must provide privacy notices explaining how customer information is collected, used, and shared

Data breach notification is required within 45 days if personal information is compromised

Alaska enforces strict anti-fraud provisions with criminal penalties for insurance fraud

Continuing education requirements include 3 hours of ethics every 2 years to maintain license
Last updated: January 2026

Privacy Requirements
Federal Privacy Law: Gramm-Leach-Bliley Act (GLBA)

GLBA establishes federal privacy requirements for financial institutions, including insurance companies and producers:

Requirement Description
Privacy Notice Must provide notice of privacy practices
Opt-Out Rights Consumers can opt out of certain information sharing
Safeguards Rule Must protect customer information
Pretexting Protection Cannot obtain information through false pretenses
Nonpublic Personal Information (NPI)

NPI Includes :

Social Security numbers
Financial account numbers
Income and employment information
Credit history and scores
Health information
Insurance claims history
Policy and coverage details
Any personally identifiable financial information

What is NOT NPI :

Publicly available information
Business contact information (in most contexts)
Aggregate data without personal identifiers
Privacy Notice Requirements

When to Provide Privacy Notice :

At establishment of customer relationship
Annually thereafter (if sharing NPI with non-affiliates)
When privacy practices change

Privacy Notice Must Explain :

Categories of NPI collected
Categories of NPI disclosed
Categories of affiliates and non-affiliates receiving NPI
Categories of former customer NPI disclosed
How NPI is protected
Right to opt out of certain sharing
Opt-Out Rights

Consumer Rights Under GLBA :

Opt out of NPI sharing with non-affiliated third parties
Opt out must be clear and conspicuous
Reasonable method to exercise opt-out
Must honor opt-out requests

Exceptions - Can Share Without Opt-Out :

With service providers under contract
For processing transactions
With regulatory agencies
As required by law
With affiliates (limited)
Information Security (Safeguards Rule)

Producer Obligations :

Requirement Implementation
Risk Assessment Identify and assess risks to customer information
Safeguards Implement safeguards addressing identified risks
Testing Regularly test and monitor safeguards
Vendor Oversight Ensure service providers maintain appropriate safeguards
Adjustment Update program as circumstances change

Physical Safeguards :

Secure file storage
Locked offices/cabinets
Clean desk policy
Visitor access controls
Secure document destruction

Technical Safeguards :

Password protection
Encryption for sensitive data
Firewalls and antivirus
Secure email practices
Access controls

Administrative Safeguards :

Employee training
Background checks
Written security policies
Incident response procedures
Regular reviews
Alaska Privacy Laws
Alaska Personal Information Protection Act

Alaska requires :

Reasonable security measures for personal information
Proper disposal of records containing personal information
Breach notification when personal information is compromised
Data Breach Notification

Alaska Statute AS 45.48.010 - Breach Notification Requirements:

Requirement Details
Triggering Event Unauthorized acquisition of personal information
Notification Timeline As expeditiously as possible, no later than 45 days
Who to Notify Affected Alaska residents
How to Notify Written notice or electronic if consent obtained
Additional Notices Attorney General if 1,000+ affected

Personal Information Requiring Notification :

Social Security number
Driver's license or ID number
Financial account numbers with access codes
Passwords or PINs
Digital signatures

Notification Must Include :

Description of incident
Type of information involved
Steps taken in response
Contact information for questions
Contact for credit reporting agencies
Consequences of Privacy Violations

Regulatory Actions :

Division of Insurance investigation
Corrective action orders
Fines up to $25,000 per violation
License suspension or revocation

Civil Liability :

Consumer lawsuits
Class action potential
Actual damages
Statutory damages in some cases

Criminal Penalties :

Identity theft prosecutions
Federal charges for willful violations
Insurance Fraud Prevention
Alaska's Anti-Fraud Provisions

Alaska Statute AS 21.36.360 - Insurance Fraud:

Prohibited Conduct :

Making false statements on applications
Filing fraudulent claims
Staging accidents or losses
Inflating claim amounts
Concealing material information
Assisting others in fraud
Types of Insurance Fraud

Hard Fraud (Planned):

Type Example
Staged Accident Deliberately causing collision for claim
Arson Intentionally burning property for insurance
Fake Theft Claiming items stolen that weren't
Faked Injury Pretending to be injured for payment
Application Fraud Lying on application to get coverage

Soft Fraud (Opportunistic):

Type Example
Claim Padding Exaggerating legitimate claim amounts
Omission Not disclosing material facts on application
Misrepresentation Incorrect information to get lower premium
Opportunistic Claim Adding pre-existing damage to legitimate claim
Producer's Role in Fraud Prevention

Obligations :

Don't Participate - Never assist in fraudulent activity
Report Suspected Fraud - Duty to report to insurer
Document Accurately - Ensure applications and claims are truthful
Verify Information - Check for inconsistencies
Educate Clients - Explain fraud consequences

Red Flags for Fraud :

Excessive claims history
Claims shortly after policy inception
Pressure to expedite claims
Inconsistent stories
Reluctance to provide documentation
Cash transactions only
Unusual coverage requests
Fraud Penalties in Alaska

Criminal Penalties :

Fraud Amount Classification Penalty
Under $500 Class A Misdemeanor Up to 1 year jail, $10,000 fine
$500 - $25,000 Class C Felony Up to 5 years prison, $50,000 fine
$25,000 - $100,000 Class B Felony Up to 10 years prison, $100,000 fine
Over $100,000 Class A Felony Up to 20 years prison, $250,000 fine

Additional Consequences :

Restitution ordered
Insurance license revocation
Permanent record
Civil lawsuits
Industry database listing

Critical : Producers who participate in or assist fraud face the same penalties as the perpetrators. Even looking the other way can result in discipline.

Continuing Education Requirements
Alaska CE Requirements

Biennial Requirements :

Requirement Hours
Total CE Hours 24 hours every 2 years
Ethics Requirement 3 hours minimum
Timing Before license renewal date
Carryover No excess hours carry forward
Approved CE Topics

Acceptable Topics :

Insurance products and coverages
Alaska insurance law and regulations
Ethics and professional conduct
Sales practices and suitability
Claims handling
Risk management
Underwriting principles

Non-Acceptable Topics :

Marketing and sales motivation
Office management
General business training
Technology (unless insurance-specific)
Personal development
CE Compliance Process

Steps to Comply :

Track CE Hours - Maintain records of completed courses
Complete Before Deadline - Don't wait until last minute
Verify Provider Approval - Ensure courses are Alaska-approved
Report Completion - Through NIPR or provider reporting
Keep Certificates - Maintain for 4 years in case of audit

Late Compliance :

$25 late fee
License may be suspended
Cannot sell insurance until compliant
Must complete CE before reinstatement
CE Providers

Major Approved Providers :

Kaplan Financial Education
WebCE
ExamFX
America's Professor
NAIC education programs
Industry association programs
Insurance company training (if approved)
Record Keeping Requirements
Required Records

Alaska requires producers to maintain :

Record Type Retention Period
Applications 5 years after policy term
Policies and endorsements 5 years after expiration
Premium records 5 years
Claims files 5 years after closure
Client correspondence 5 years
CE certificates 4 years
Licenses and appointments Current plus 4 years
Record Format

Acceptable Formats :

Paper originals
Electronic copies (scanned)
Digital documents
Cloud storage (with appropriate security)

Requirements for Electronic Records :

Accessible for inspection
Protected from unauthorized access
Backed up regularly
Retrievable in readable format
Stored securely
Record Inspection

Division May Request Records :

At any time during business hours
With reasonable notice (typically 10-15 days)
For any records within retention period
As part of routine or for-cause examination

Producer Must :

Provide records within timeframe
Allow on-site inspection if requested
Cooperate fully with examination
Make staff available for questions
Reporting Requirements
Change Reporting

Report Within 30 Days :

Address changes (home or business)
Email or phone changes
Name changes (with documentation)
New business locations
Criminal Conviction Reporting

Report Within 30 Days :

ANY criminal conviction (misdemeanor or felony)
Guilty pleas or no contest pleas
Administrative actions by other regulators
Professional license suspensions/revocations

Failure to Report :

Separate violation from underlying conviction
Grounds for immediate revocation
Cannot claim ignorance of requirement
Administrative Actions

Must Report :

Disciplinary actions by other state insurance departments
Sanctions by other regulatory bodies
Judgments or liens
Bankruptcy filings
Market Conduct Standards
Fair Treatment

Producers Must :

Treat all applicants fairly
Apply consistent underwriting standards
Not discriminate based on protected classes
Provide equal service regardless of premium size
Prompt Service

Service Standards :

Function Timeframe
Return calls/emails 24 business hours
Process applications 48 hours
Deliver policies 5 days of issue
Report claims Same business day
Respond to complaints 5 business days
Advertising Standards

Advertising Must Be :

Truthful and accurate
Not misleading or deceptive
Clear about limitations
Compliant with filed rates
Properly disclosed as advertising

Prohibited Advertising :

False claims about coverage
Misleading price comparisons
Unapproved endorsements
Unsubstantiated claims
Bait and switch tactics
Professional Development
Beyond Minimum Requirements

Best Practices :

Exceed CE minimums (target 30+ hours)
Pursue professional designations
Join industry associations
Attend conferences and seminars
Stay current on industry changes
Professional Designations

Valuable Designations for P&C Producers :

Designation Focus
CIC Certified Insurance Counselor
CPCU Chartered Property Casualty Underwriter
CRM Certified Risk Manager
AAI Accredited Adviser in Insurance
ARM Associate in Risk Management
Building a Reputation

Long-Term Success Factors :

Consistent ethical conduct
Technical competence
Client-focused service
Community involvement
Professional relationships
Industry leadership

Career Advice : Your reputation is your most valuable asset. It takes years to build and seconds to destroy. Always choose the ethical path, even when it costs you a sale.

Summary: The Ethical Alaska Producer

Checklist for Ethical Practice :

✓ Put client interests first in all decisions
✓ Disclose all material information completely
✓ Handle premiums as sacred trust funds
✓ Never engage in rebating, twisting, or misrepresentation
✓ Protect client privacy and information security
✓ Report fraud and suspicious activity
✓ Maintain required records for proper periods
✓ Complete CE requirements including ethics
✓ Report changes and convictions promptly
✓ Cooperate fully with regulatory inquiries
✓ Provide prompt, professional service
✓ Continue learning and improving
✓ Build and protect your professional reputation

When in Doubt :

Ask yourself: "Would I be comfortable if this appeared in the newspaper?"
Consult with compliance or legal resources
Contact the Alaska Division of Insurance for guidance
Choose the more conservative ethical path
Document your reasoning and decisions

Remember : The insurance industry depends on trust. Every ethical producer strengthens the entire profession. Every violation undermines it for everyone.