What it does
IL 02 80 replaces the Cancellation Common Policy Condition for Alaska. It modifies the Capital Assets, Commercial Auto, CGL, Inland Marine and other listed coverage parts.
Key provisions (09 08 edition)
- The insurer's notice, stating the reason, must go by first-class mail to the insured and to the agent or broker of record at least:
- 10 days before cancellation for conviction of a crime increasing a hazard insured against, or for fraud or material misrepresentation in obtaining the insurance or pursuing a claim.
- 20 days for nonpayment of premium, or failure to provide information needed to confirm exposure or determine premium.
- 60 days for any other reason.
- A post office certificate of mailing or certified mail receipt is proof of mailing.
- Refunds go to the agent or broker, the first Named Insured or the premium finance company. Insurer cancellations are pro rata and returned before the effective date, or within 45 days for the listed reasons.
- If the first Named Insured cancels, the refund is pro rata unearned premium minus a cancellation fee of 7.5% of the pro rata unearned premium.
Quoting and selling notes
- Tell Alaska clients about the 7.5% fee before they cancel mid-term.
- Alaska also has its own TRIA exclusion form, IL 09 78.
