Appraisal and Umpire Demand (Policyholder) — Alaska

APPRAISAL AND UMPIRE DEMAND — ALASKA

TABLE OF CONTENTS

1. Formal Demand for Appraisal
2. Identification of Policy and Loss
3. Statement of Valuation Dispute
4. Nomination of Insured's Appraiser
5. Carrier's Appraiser — Statutory Deadline
6. Umpire Selection Framework
7. Scope of Appraisal Under Alaska Law
8. Timeline and Statutory Deadlines
9. Preservation of Bad Faith and Statutory Claims
10. Reservation of Rights
11. Demand for Response
12. Petition to Compel Appraisal
13. Appraisal Award Form
14. Alaska-Specific Practice Notes
15. Sources and References

PART I: FORMAL DEMAND FOR APPRAISAL

[Send via certified mail, return receipt requested, and email]

Date: [__/__/____]

VIA CERTIFIED MAIL AND EMAIL

To:
[________________________________]
[________________________________]
[________________________________]
[________________________________]
(Carrier name, Claims Department, address, and email)

From:
[________________________________]
[________________________________]
[________________________________]
[________________________________]
(Insured name or Counsel for Insured, address, and contact information)

Re: Formal Demand for Appraisal Pursuant to AS 21.96.035 and Policy Appraisal Clause
Policy Number: [________________________________]
Claim Number: [________________________________]
Date of Loss: [__/__/____]
Insured Property: [________________________________]

1. FORMAL DEMAND FOR APPRAISAL

Dear [________________________________] (Claims Adjuster / Claims Manager):

This letter constitutes the formal written demand of [________________________________] ("Insured") for appraisal of the above-referenced loss pursuant to Alaska Statute § 21.96.035 and the appraisal clause contained in Section [________________________________] of Policy No. [________________________________] ("the Policy") issued by [________________________________] ("the Carrier").

Alaska law mandates that every property, casualty, motor vehicle, and inland marine insurance policy issued or delivered in this state contain an appraisal clause providing a contractual means to resolve disputes over the value of covered first party losses. AS 21.96.035(a). The Insured and the Carrier have been unable to agree on the amount of the covered first party loss arising from the [________________________________] (describe peril) that occurred on or about [__/__/____].

Pursuant to AS 21.96.035(b), the Insured hereby makes written demand upon the Carrier to submit this dispute for appraisal.

The Carrier is required to appoint its appraiser and notify the Insured within ten (10) days of this written demand. AS 21.96.035(b).

2. IDENTIFICATION OF POLICY AND LOSS

3. STATEMENT OF VALUATION DISPUTE

The Insured and the Carrier have failed to agree on the amount of the covered first party loss as follows:

Insured's Position:

Carrier's Position:

Variance: $[________________________________]

The dispute involves the following specific items:

☐ Scope of repair/replacement needed
☐ Unit pricing of labor and/or materials
☐ Actual cash value depreciation calculations
☐ Replacement cost value calculations
☐ Additional living expense / loss of use amounts
☐ Contents / personal property valuation
☐ Code upgrade costs
☐ Overhead and profit
☐ Other: [________________________________]

4. NOMINATION OF INSURED'S APPRAISER

Pursuant to AS 21.96.035(b), the Insured hereby nominates the following competent appraiser:

The Insured's appraiser is competent within the meaning of AS 21.96.035 and has no financial interest in the outcome of this claim beyond the appraiser's fee.

5. CARRIER'S APPRAISER — STATUTORY DEADLINE

Under AS 21.96.035(b), the Carrier must notify the Insured of its selected competent appraiser within TEN (10) DAYS of this written demand.

The statutory deadline for the Carrier to appoint and notify the Insured of its appraiser is: [__/__/____] (10 days from date of demand).

Please provide:

☐ Full name of the Carrier's appraiser
☐ Professional qualifications and licensing
☐ Firm affiliation
☐ Mailing address, telephone, and email

NOTE: The Alaska statute requires that the Carrier's appraiser be "competent." The Insured reserves the right to challenge the appointment of any appraiser who lacks the qualifications to value the property at issue or who has a conflict of interest that compromises independence.

6. UMPIRE SELECTION FRAMEWORK

Under AS 21.96.035(b), the two appraisers shall promptly choose a competent and impartial umpire.

Proposed Umpire Candidates:

1. [________________________________] — [________________________________] (qualifications)
2. [________________________________] — [________________________________] (qualifications)
3. [________________________________] — [________________________________] (qualifications)

If the Appraisers Cannot Agree on an Umpire:

Alaska law requires that the umpire be competent and impartial. If the appraisers cannot agree on an umpire, either party may petition the Alaska Superior Court for appointment of an umpire. The Insured proposes the following procedure:

☐ Each appraiser submits a list of three (3) qualified umpire candidates; the appraisers alternate strikes until one remains
☐ The appraisers jointly petition the Superior Court for the State of Alaska, [________________________________] Judicial District, for umpire appointment
☐ Other: [________________________________]

7. SCOPE OF APPRAISAL UNDER ALASKA LAW

Under AS 21.96.035, the appraisal is limited to resolving disputes over the "value of a covered first party loss." The appraisal panel shall determine:

☐ The amount of the covered first party loss
☐ The actual cash value of the damaged property
☐ The replacement cost value (if applicable under the Policy)
☐ The cost to repair or replace each damaged item
☐ Depreciation amounts

Matters Outside the Scope of Appraisal:

☐ Whether the loss is covered under the Policy
☐ Interpretation of Policy terms, conditions, or exclusions
☐ Questions of causation that go to coverage (but note Alaska's efficient proximate cause doctrine under AS 21.36.096)
☐ Whether the Carrier has acted in bad faith
☐ Application of Policy sublimits, deductibles, or coinsurance provisions

ALASKA PRACTICE NOTE — EFFICIENT PROXIMATE CAUSE: Under AS 21.36.096, an insurer may not deny a claim if a covered peril is the dominant cause of the loss, even if an excluded peril is also in the chain of causation operating on a secondary basis. If causation is genuinely disputed, that dispute may need judicial resolution before appraisal can determine the amount of loss attributable to covered perils.

8. TIMELINE AND STATUTORY DEADLINES

Alaska Statute § 21.96.035 sets specific deadlines:

Proposed Supplemental Timeline:

9. PRESERVATION OF BAD FAITH AND STATUTORY CLAIMS

THE INSURED EXPRESSLY PRESERVES ALL BAD FAITH AND STATUTORY CLAIMS UNDER ALASKA LAW.

The Insured's invocation of the appraisal process does not waive, release, or compromise any claims the Insured may have against the Carrier for:

☐ Bad faith denial, delay, or underpayment of the claim
☐ Violation of AS 21.36.125 — Unfair Claim Settlement Practices, including:

• Misrepresenting facts or policy provisions relating to coverage
• Failing to acknowledge and act promptly upon communications regarding the claim
• Failing to adopt and implement reasonable standards for prompt investigation
• Refusing to pay claims without conducting a reasonable investigation
• Failing to affirm or deny coverage within a reasonable time
• Compelling the insured to institute litigation by offering substantially less than the amounts ultimately recovered
  ☐ Violation of the implied covenant of good faith and fair dealing
  ☐ Penalties, interest, and attorney's fees under applicable Alaska law
  ☐ Any other statutory or extra-contractual remedies

ALASKA PRACTICE NOTE: Under AS 21.36.125, an insurer that engages in unfair claim settlement practices faces disciplinary action including fines and potential revocation of the insurer's license to sell insurance in Alaska. An insurer's refusal to participate in the mandatory appraisal process may itself constitute an unfair claim settlement practice.

10. RESERVATION OF RIGHTS

The Insured expressly reserves:

• All rights and remedies under the Policy
• All rights and remedies under Alaska insurance law, including AS 21.96.035, AS 21.36.125, and AS 21.36.096
• The right to challenge the appraisal process or award on grounds of fraud, mistake, misconduct, partiality, or failure to follow statutory procedures
• The right to seek judicial review of the appraisal award
• The right to recover attorney's fees, costs, and interest as provided by Alaska law
• All rights not expressly waived herein

11. DEMAND FOR RESPONSE

The Insured demands that the Carrier respond to this demand within ten (10) days as required by AS 21.96.035(b), confirming:

1. The Carrier's agreement to proceed with appraisal as required by law
2. The name and contact information of the Carrier's competent appraiser
3. The Carrier's proposed timeline for the appraisal process

Failure to comply with the mandatory appraisal process under AS 21.96.035 may constitute:

• A violation of the Carrier's statutory obligations
• An unfair claim settlement practice under AS 21.36.125
• Grounds for judicial intervention, including an order compelling appraisal
• Evidence of bad faith claim handling

Please direct all correspondence regarding this matter to:

[________________________________]
[________________________________]
[________________________________]
[________________________________]

Respectfully submitted,

Signature: ____________________________________

Printed Name: [________________________________]

Title / Capacity: [________________________________]

Date: [__/__/____]

PART II: PETITION TO COMPEL APPRAISAL — ALASKA SUPERIOR COURT

IN THE SUPERIOR COURT FOR THE STATE OF ALASKA
[________________________________] JUDICIAL DISTRICT AT [________________________________]

MOTION TO COMPEL APPRAISAL PURSUANT TO AS 21.96.035

COMES NOW [________________________________] ("Petitioner"), by and through undersigned counsel, and respectfully moves this Court to compel [________________________________] ("Respondent") to participate in the mandatory appraisal process as required by Alaska Statute § 21.96.035 and the parties' insurance policy, and in support thereof states:

I. STATUTORY FRAMEWORK

1. Alaska Statute § 21.96.035(a) requires that every motor vehicle, property, casualty, and inland marine insurance policy issued or delivered in Alaska include an appraisal clause providing a contractual means to resolve disputes over the value of covered first party losses.

2. Under AS 21.96.035(b), if the insured and insurer fail to agree on the amount of a covered first party loss, either party may make written demand to submit the dispute to appraisal. Within ten (10) days of the written demand, each party must notify the other of the competent appraiser each has selected.

3. The appraisal process is mandatory in Alaska — unlike many states where appraisal depends solely on policy language, Alaska law requires the clause be included in covered policies.

II. FACTS

4. Petitioner is the named insured under Policy No. [________________________________], a [________________________________] policy issued by Respondent, effective [__/__/____] through [__/__/____].

5. On or about [__/__/____], Petitioner's property located at [________________________________] sustained damage from [________________________________].

6. Petitioner timely reported the loss. Respondent valued the loss at $[________________________________]; Petitioner's estimate is $[________________________________].

7. On [__/__/____], Petitioner made written demand for appraisal pursuant to AS 21.96.035(b), nominating [________________________________] as its competent appraiser.

8. Despite the mandatory nature of the appraisal process and the expiration of the ten-day statutory deadline, Respondent has:

☐ Failed to appoint its appraiser within ten (10) days as required by AS 21.96.035(b)
☐ Refused to participate in the appraisal process
☐ Other: [________________________________]

III. LEGAL ARGUMENT

9. Appraisal under AS 21.96.035 is a mandatory statutory procedure. The Alaska Supreme Court has recognized that appraisal is distinct from arbitration and that the policy considerations and rules of interpretation applicable to arbitration do not apply to the appraisal process. McDonnell v. State Farm Mut. Auto. Ins. Co., 299 P.3d 715, 723 (Alaska 2013).

10. Respondent's failure to comply with the mandatory appraisal process violates AS 21.96.035 and may constitute an unfair claim settlement practice under AS 21.36.125.

11. This Court has the authority to compel compliance with the statutory appraisal process and to appoint an umpire if the appraisers cannot agree. The Court may also appoint an appraiser on behalf of a noncompliant party.

IV. PRAYER FOR RELIEF

WHEREFORE, Petitioner respectfully requests that this Court:

A. Compel Respondent to participate in appraisal as required by AS 21.96.035;

B. Require Respondent to appoint a competent appraiser within [____] days;

C. If Respondent fails to comply, appoint an appraiser on Respondent's behalf;

D. Appoint an umpire if the appraisers cannot agree within a reasonable time;

E. Award Petitioner attorney's fees and costs under Alaska Civil Rule 82;

F. Grant such other relief as the Court deems just.

Respectfully submitted,

Signature: ____________________________________

Printed Name: [________________________________]

Bar Number: [________________________________]

Firm: [________________________________]

Address: [________________________________]

Telephone: [________________________________]

Email: [________________________________]

Attorney for Petitioner

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on [__/__/____], a true and correct copy of the foregoing Motion to Compel Appraisal was served upon:

[________________________________]
[________________________________]
[________________________________]

by [________________________________] (method of service).

Signature: ____________________________________

PART III: APPRAISAL AWARD FORM — ALASKA

APPRAISAL AWARD PURSUANT TO AS 21.96.035

Claim Information:

Appraisal Panel:

AWARD DETERMINATION

The undersigned, having been duly appointed pursuant to AS 21.96.035, having inspected the damaged property, reviewed all relevant documentation, and deliberated in good faith, hereby determine the amount of the covered first party loss as follows:

Total Amount of Covered First Party Loss: $[________________________________]

Expenses and Fees: All expenses and fees (not including counsel or adjuster fees) incurred because of this appraisal shall be paid as determined by the umpire, pursuant to AS 21.96.035(e).

☐ Expenses allocated equally between Insured and Carrier
☐ Expenses allocated as follows: [________________________________]

SIGNATURES

This award is made pursuant to AS 21.96.035(d) by:

☐ Agreement of both appraisers — binding on Insured and Carrier
☐ Agreement of one appraiser and the umpire — binding on Insured and Carrier

Insured's Appraiser:

Signature: ____________________________________ Date: [__/__/____]

Printed Name: [________________________________]

☐ Agrees with this award ☐ Dissents from this award

Carrier's Appraiser:

Signature: ____________________________________ Date: [__/__/____]

Printed Name: [________________________________]

☐ Agrees with this award ☐ Dissents from this award

Umpire (if applicable):

Signature: ____________________________________ Date: [__/__/____]

Printed Name: [________________________________]

☐ Agrees with this award

14. ALASKA-SPECIFIC PRACTICE NOTES

A. Mandatory Appraisal Statute — AS 21.96.035

Alaska is one of the few states that mandates by statute that property, casualty, motor vehicle, and inland marine policies include an appraisal clause. This means:

• The insurer cannot omit the appraisal clause from the policy
• Either party can demand appraisal when a valuation dispute exists
• The statutory procedure governs even if the policy language differs
• The statute sets specific deadlines (10 days for appraiser appointment, 15 days for appraiser statements)

B. Appraisal Is Not Arbitration in Alaska

The Alaska Supreme Court has distinguished appraisal from arbitration. In McDonnell v. State Farm Mut. Auto. Ins. Co., 299 P.3d 715, 723 (Alaska 2013), the court held that "policy considerations and rules of interpretation applicable to arbitration clauses do not apply when the provision at issue constitutes a statutorily mandated appraisal process." This means:

• Alaska's Uniform Arbitration Act (AS 09.43.300 et seq.) does not govern appraisal
• Courts apply contract law principles, not arbitration law, to appraisal disputes
• The scope of judicial review of appraisal awards may differ from review of arbitration awards

C. Binding Nature of Awards

Under AS 21.96.035(d):

• If both appraisers agree on the amount of loss, their written agreement is binding on both parties
• If the appraisers disagree, they submit the dispute to the umpire, and a decision agreed to by one appraiser and the umpire is binding on both parties

D. Cost Allocation

Under AS 21.96.035(e), all expenses and fees — not including counsel or adjuster fees — incurred because of the appraisal are paid as determined by the umpire. This is a notable departure from the standard fire policy provision (which typically splits umpire costs equally), because the Alaska statute gives the umpire discretion to allocate expenses.

E. Efficient Proximate Cause Doctrine

Alaska codifies the efficient proximate cause doctrine at AS 21.36.096. An insurer may not deny a claim if the covered peril is the dominant cause of the loss, even if an excluded peril is in the chain of causation on a secondary basis. If there is a genuine dispute about whether the covered peril is the dominant cause, that is a coverage/causation question for judicial resolution, not appraisal.

F. Unfair Claim Settlement Practices

AS 21.36.125 prohibits numerous unfair claim settlement practices. An insurer's refusal to participate in the mandatory appraisal process could implicate several of these prohibitions, including:

• Failing to acknowledge and act promptly upon communications regarding the claim
• Refusing to pay claims without conducting a reasonable investigation
• Compelling the insured to institute litigation by offering substantially less than the amount ultimately recovered

15. SOURCES AND REFERENCES

Alaska Statutes

• AS 21.96.035 — Mandatory Appraisal — https://codes.findlaw.com/ak/title-21-insurance/ak-st-sect-21-96-035/
• AS 21.36.125 — Unfair Claim Settlement Practices — https://law.justia.com/codes/alaska/title-21/chapter-36/article-1/section-21-36-125/
• AS 21.36.096 — Efficient Proximate Cause — https://www.commerce.alaska.gov/web/ins/Consumers/Rights/Claims.aspx

Alaska Case Law

• McDonnell v. State Farm Mut. Auto. Ins. Co., 299 P.3d 715 (Alaska 2013) — Appraisal is not arbitration

Alaska Division of Insurance

• Consumer Rights — Property Casualty Claims — https://www.commerce.alaska.gov/web/ins/Consumers/Rights/Claims.aspx

General Appraisal Resources

• IRMI, "Appraisal Under the Homeowners Policy" — https://www.irmi.com/articles/expert-commentary/appraisal-under-the-homeowners-policy
• Merlin Law Group, Property Insurance Coverage Law Blog — https://www.propertyinsurancecoveragelaw.com/

This template is provided by ezel.ai for informational purposes only and does not constitute legal advice. Alaska insurance appraisal procedures are governed by AS 21.96.035 and other Alaska statutes. An attorney licensed in Alaska should review and customize this template before use. Laws and procedures may have changed since the last update of this template.

Last updated: 2026-02-26