(a) An insurer may not exercise its right to cancel a policy of personal automobile insurance except for the following reasons:

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Terms Used In Alaska Statutes 21.36.210

  • Conviction: A judgement of guilt against a criminal defendant.
  • Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
  • Fraud: Intentional deception resulting in injury to another.
  • property: includes real and personal property. See Alaska Statutes 01.10.060
(1) nonpayment of premium; or
(2) the driver’s license or motor vehicle registration of either the named insured or of an operator who resides in the same household as the named insured or who customarily operates a motor vehicle insured under the policy has been under suspension or revocation during the policy period or, if the policy is a renewal, during its policy period or the 180 days immediately preceding its effective date.
(b) During the policy period, a modification of automobile physical damage coverage, except coverage for loss caused by collision, whereby provision is made for the application of a deductible amount not exceeding $100 is not a cancellation of the coverage or of the policy.
(c)[Repealed, Sec. 47 ch 29 SLA 1987].
(d) This section does not apply to

(1) the failure to renew a policy, except as to coverage in force for less than 12 months;
(2) a policy that has been in effect less than 60 days at the time notice of cancellation is mailed or delivered by the insurer, unless it is a renewal policy.
(e)[Repealed, Sec. 47 ch 29 SLA 1987].
(f) An insurer may not exercise its right to cancel a policy of personal insurance other than personal automobile insurance, except for the following reasons:

(1) nonpayment of premiums, including nonpayment of additional premiums, calculated in accordance with the current rating manual of the insurer, justified by a physical change in the insured property or a change in its occupancy or use;
(2) conviction of the insured of a crime having as one of its necessary elements an act increasing a hazard insured against;
(3) discovery of fraud or material misrepresentation made by the insured or a representative of the insured in obtaining the insurance or by the insured in pursuing a claim under the policy;
(4) discovery of a grossly negligent act or omission by the insured that substantially increases the hazards insured against;
(5) physical changes in the insured property that result in the property becoming uninsurable; or
(6) entire abandonment of the property that increases a hazard insured against; if a policy is cancelled under this paragraph, in addition to the notice required under AS 21.36.220, the insurer shall give notice of cancellation of the policy to a lender on file with the insurer at the time of the cancellation; in this paragraph, “entire abandonment” means the property is no longer occupied by the insured as defined by the policy and does not have contents of substantial utility; however, property is not entirely abandoned if the insured or an agent for the insured demonstrates that the property is being reasonably maintained and monitored for a condition that might cause damage to the property.
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