TO: All Insurance Companies and Individuals Settling Claims in Alaska
RE: Standards for Prompt, Fair, and Equitable Claim Settlements
Recently, the division of insurance became aware of an insurer practice in settling claims that is causing delay for the consumer in violation of AS 21.36.125 and 3 AAC 26.070.
3 AAC 26.070(d) states:
The division understands that some insurers have used claim checks drawn on out-of-state banks without disclosing to the claimant or payee which local bank will cash the check immediately upon presentation. To avoid violating the above statute or regulation, an insurer using out-of-state claim checks should adopt a method of written disclosure to the consumer that identifies the local bank at which a settlement check may be presented and cashed immediately without delay.
If you have any questions regarding this bulletin, please contact the Consumer Service Section of the Division of Insurance; 3601 C Street, Suite 1324; Anchorage, AK 99503-5948; (907) 269-7900; fax (907) 269-7910; or via electronic mail at: .
DATED: October 28, 1998.