Fair Treatment to Consumers Following the 2025 Storm Impacting the West Coast of Alaska

Department of Commerce, Community, and Economic Development DIVISION OF INSURANCE Juneau Office P.O. Box 110805 Juneau, Alaska 99811-0805 Main: 907.465.2515 Fax: 907.465.3422 BULLETIN B25-08 TO: ALL INSURERS AUTHORIZED TO TRANSACT BUSINESS IN THE STATE OF ALASKA AND OTHER INTERESTED PARTIES RE: FAIR TREATMENT TO CONSUMERS FOLLOWING THE 2025 STORM IMPACTING THE WEST COAST OF ALASKA On October 9, 2025, Governor Mike Dunleavy issued a disaster declaration for storms impacting the west coast of Alaska. On October 12, 2025, the Governor expanded the list of impacted areas. The disaster declaration activates the State Emergency Operations Plan, bringing together a statewide coordinated response to communities impacted by this record storm. The impacted areas include: Boroughs Northwest Arctic Borough North Slope Borough Regional Education Attendance Areas Kashunamiut Lower Yukon Bering Strait Yupitt Pribilof Island Lower Kuskokwim All Lines of Insurance The Division directs all insurers authorized to transact insurance in Alaska to suspend the issuance of cancellation or nonrenewal of policies in affected areas for the duration of this bulletin. This temporary moratorium recognizes that insureds may be displaced, unable to access their homes or businesses, or otherwise, and unable to obtain coverage during this period. Once normal conditions resume, insurers may resume standard cancellation and nonrenewal practices in accordance with Alaska laws and regulations. Insurers must provide reasonable notice to affected policyholders prior to reinstating such actions. In conjunction with this effort, the Division will work with carriers to minimize the regulatory effects of such an extension, specifically financial review requirements. The extension of the grace period does not eliminate the obligation to pay the premium, but limits policy cancellation for late payment. Carriers are encouraged to work with policy holders in the collection of premiums. It is possible that electronic payment methods may not be operating correctly in the immediate aftereffects of the floods as banks and other financial institutions are closed without power or B 25-08 (Supersedes B 25-07) Fair Treatment to Consumers following 2025 Storm October 31, 2025 Page 2 of 2 internet service. It is the Division's expectation that any problems with premium payment during the extended period would be resolved by the insurance company without a consumer complaint being filed. Health Insurance Access to healthcare services and supplies is of particular concern to the Division as retail stores remain closed, hospitals may be damaged, and consumers may be evacuated outside their community. It is expected that insurers will suspend their network requirements for pharmaceutical supplies until October 31, 2025. Consumers should be able to access their necessary prescription from a convenient pharmacy without concern of a nonnetwork payment penalty. It is expected that insurers will pay for prescriptions at the in-network level of benefit for cost sharing (e.g., coinsurance, deductible). It is also the Division's expectation that insurers will allow for coverage of longer supplies of medication. For example, if a 30-day supply is typically the limit under an insurance contract, insurers shall cover a 90-day supply for individuals who are impacted by the storms. Insurers should also be certain that prescription drugs are covered when obtained at retail pharmacies if delivery of mail order prescriptions are disrupted. Investigations of Claims The Division reminds insurers that AS 21.36.125 requires insurers to acknowledge and act promptly on communications with consumers. AS 21.36.125 also requires a “reasonable investigation of all of the available information” prior to the refusal to pay a claim and that insurers must provide an explanation of the basis for denial of the claim or the offer of a settlement. Dominant Cause of Loss The Division would like to remind insurers and impacted consumers of Bulletin B 18-17 regarding dominant cause of loss. The bulletin is available on the Division’s website. If you have questions regarding this bulletin, please contact Sian Ng-Ashcraft, Property and Casualty Supervisor at sian.ng-ashcraft@alaska.gov or Sarah Bailey, Life and Health Supervisor at sarah.bailey@alaska.gov. This bulletin supersedes B25-07 and shall expire at 11:59 pm on November 30, 2025. Dated ______________ ______________________ Heather Carpenter Acting Director 10/31/2025