Reservation of Rights Rebuttal (Policyholder) - Alaska

ALASKA RESERVATION-OF-RIGHTS RESPONSE

Policyholder Coverage, Defense, and Independent-Counsel Worksheet

COMPLETION GATE — COUNSEL MUST COMPLETE FIRST

Every checkbox below is an issue-spotting draft. Select it only when the completed profile identifies the supporting policy language, current authority, and record facts.

Do not send this letter with unchecked research blanks, unsupported remedies, or a deadline copied from another jurisdiction.

PART 1 — LETTER INFORMATION

Delivery method required by policy or selected by counsel: [________________________________]

Date: [__/__/____]

To:

[CLAIMS PROFESSIONAL / COVERAGE COUNSEL NAME]
[INSURER]
[ADDRESS]
[EMAIL]

From:

[ALASKA COVERAGE COUNSEL / FIRM]
[ALASKA BAR NO.]
[ADDRESS / EMAIL / TELEPHONE]

Re:

Dear [________________________________]:

We represent [INSURED] concerning the claim and action identified above. This letter responds to the insurer's [DATE] reservation-of-rights letter ("Reservation Letter"). It requests only the coverage, defense, explanation, and independent-counsel action supported by the policy, facts, and authorities inserted below.

The Insured intends to preserve rights and defenses that the policy and governing law permit this letter to preserve. No civil claim, remedy, waiver, estoppel consequence, or production entitlement is asserted merely because it appears as an option in this worksheet.

PART 2 — RESERVATION MAP AND FACTUAL CORRECTIONS

2.1 Reservation Map

2.2 Preliminary Response — Select Only Supported Items

☐ The Reservation Letter omits or inaccurately quotes this policy language: [________________________________].

☐ The Reservation Letter does not connect this reserved provision to a specific allegation or known fact: [________________________________].

☐ The Reservation Letter conflates the present defense question with the later indemnity question as follows: [________________________________].

☐ The Reservation Letter relies on a fact that is disputed or outside the material the governing defense rule permits consideration: [________________________________].

☐ The Reservation Letter does not provide the policy-and-fact explanation identified in AS 21.36.125(a)(15), based on: [________________________________].

☐ Counsel has identified a supported timing, prejudice, waiver, or estoppel objection under this authority: [________________________________].

2.3 Factual Corrections

PART 3 — COVERAGE AND DEFENSE ANALYSIS

3.1 Coverage Grant

Insuring agreement: [QUOTE POLICY LANGUAGE]

Defined terms: [QUOTE RELEVANT DEFINITIONS]

Insured status: [NAMED / ADDITIONAL / OTHER; ENDORSEMENT]

Trigger facts or allegations: [________________________________]

Counsel's current-authority analysis: [________________________________]

3.2 Conditions

3.3 Exclusions and Limitations

For each disputed exclusion or limitation, identify every element, exception, separation-of-insureds effect, burden rule, and relevant allegation. Do not use a generic ambiguity or burden statement without current Alaska authority.

3.4 Defense Result Requested

The completed profile supports this request:

☐ Withdraw the identified reservation because: [________________________________].

☐ Defend these allegations or claims: [________________________________].

☐ Confirm the treatment of other allegations and defense-cost allocation under: [POLICY / AUTHORITY].

☐ Provide a revised coverage letter quoting the controlling policy text and connecting each position to the material facts.

☐ Other: [________________________________].

Requested written response date selected by counsel: [__/__/____]

This requested date is not represented as a statutory Alaska deadline.

PART 4 — ALASKA INDEPENDENT COUNSEL UNDER AS 21.96.100

4.1 Threshold Analysis

AS 21.96.100(a) applies when the insurer has a duty to defend and a conflict of interest arises that imposes a duty to provide independent counsel. The insurer must then provide independent counsel unless the insured waives the right in writing. A policy may contain a selection method only if it complies with the section.

Complete all threshold fields:

4.2 Independent-Counsel Demand

If the threshold analysis supports the request, the Insured asks the insurer to:

1. Confirm in writing that AS 21.96.100 requires independent counsel for [IDENTIFIED RESERVED ISSUE / ALLEGATIONS].
2. Approve [ATTORNEY / FIRM] as the Insured's selected independent counsel, subject to the policy and AS 21.96.100.
3. State any counsel qualification requirement asserted under § 21.96.100(d), including the permitted requirement of at least four years of civil-litigation experience, relevant defense experience, and malpractice insurance.
4. Identify the rate actually paid in the ordinary course for defense of a similar civil action in the community where the claim arose or is being defended, unless the policy provides otherwise.
5. Identify the allegations the insurer accepts, reserves, or properly denies so counsel can keep the detailed allocation records required by subsection (d).
6. Identify the policy or statutory basis for any proposed fee allocation and the AS 09.43 arbitration process applicable to an unresolved insurer-insured fee dispute under subsection (d).

4.3 Information, Participation, and Cooperation

Under § 21.96.100(e), independent counsel and the Insured must consult with the insurer on matters relating to the civil action and timely disclose relevant information, except information that is privileged and relevant to disputed coverage; a privilege claim is subject to court review.

Under subsection (g), insurer counsel and independent counsel may participate in all aspects of the civil action and must cooperate in information exchange consistent with ethical and legal obligations. The Insured's policy cooperation duty remains in place.

Proposed reporting and consultation protocol: [________________________________]

Coverage-privilege review contact: [________________________________]

Defense invoice allocation method: [________________________________]

4.4 Settlement

Subsection (h) permits an insurer to settle directly with the plaintiff when the settlement includes all claims based on allegations for which the insurer reserved its coverage position or accepted coverage, even if the settlement does not extinguish every claim against the Insured.

Settlement authority and uncovered-exposure safeguards requested: [________________________________]

PART 5 — AS 21.36.125 REGULATORY ISSUES

AS 21.36.125(a) prohibits specified unfair claim settlement practices. Potentially relevant provisions include:

• Subsection (a)(1): misrepresenting facts or policy provisions relating to coverage;
• Subsection (a)(2): failing to acknowledge and act promptly on claim communications;
• Subsection (a)(3): failing to adopt and implement reasonable standards for prompt claim investigation;
• Subsection (a)(4): refusing payment without a reasonable investigation of available information and an explanation of the denial or compromise offer;
• Subsection (a)(5): failing to affirm or deny coverage within a reasonable time after completion of proof-of-loss statements; and
• Subsection (a)(15): failing to promptly provide a reasonable explanation of the policy basis in relation to the facts or applicable law for a denial or compromise offer.

Important limitation: AS 21.36.125(b) expressly states that the section does not create or imply a private cause of action. This letter does not plead a civil count for “violation of AS 21.36.125.” Any contract, common-law, regulatory-complaint, or other theory must be separately supported by current authority and facts.

Regulatory complaint decision and current procedure confirmed by counsel: [________________________________]

PART 6 — WAIVER, ESTOPPEL, AND EXTRA-CONTRACTUAL ISSUES

Do not assert that delay, defense control, an incomplete reservation, or a statutory practice automatically forfeits coverage defenses. Counsel must identify the required elements, prejudice or reliance, available consequence, and current authority.

Selected allegation drafted by Alaska coverage counsel:

[________________________________]

PART 7 — PRESERVATION REQUEST

The Insured requests preservation of potentially relevant information in accordance with applicable preservation duties. This is not a present demand for production, a claim that every item is discoverable, or a waiver of privilege or work product.

Potential categories, narrowed to this dispute, include:

• The claim file, activity log, and communications concerning coverage and defense;
• The policy, endorsements, underwriting materials relevant to the disputed language, and delivery records;
• Coverage opinions and communications, subject to applicable privilege and work-product law;
• Defense appointment, counsel-selection, rate, allocation, and invoice records relevant to AS 21.96.100;
• Claims-handling standards relevant to a specifically identified AS 21.36.125 issue;
• Communications with third parties concerning the reservation or coverage determination; and
• Other identified sources: [________________________________].

Custodians, systems, and date range: [________________________________]

PART 8 — REQUESTED RESPONSE

The Insured requests that the insurer respond by [__/__/____] and:

☐ Withdraw the unsupported reservation(s) identified in Part 2.

☐ Confirm the defense obligation and allocation stated in Part 3.

☐ Provide the revised policy-and-fact explanation requested in Part 3.

☐ Confirm independent counsel under AS 21.96.100 and address each item in Part 4.

☐ Correct the specified claims-handling issue identified under AS 21.36.125.

☐ Preserve the information identified in Part 7.

☐ Other: [________________________________].

Nothing in this requested response date is represented as extending or replacing a policy, court, limitations, tender, appeal, settlement, or other deadline.

Sincerely,

[ALASKA COVERAGE COUNSEL]

Signature: ______________________________________________

Alaska Bar No.: [________________________________]

Date: [__/__/____]

EXHIBIT CHECKLIST

☐ Complete policy, declarations, and endorsements

☐ Tender and proof of delivery

☐ Complaint and material amended pleadings

☐ Reservation and denial letters

☐ Reservation map and policy quotations

☐ Factual correction exhibits

☐ Independent-counsel résumé, malpractice-insurance confirmation, and proposed rate

☐ Counsel's authority memorandum

☐ Preservation scope and custodian list

SOURCES AND REFERENCES

• AS 21.96.100 — Appointment of independent counsel; conflicts of interest; settlement
• AS 21.36.125 — Unfair claim settlement practices
• Enrolled SB 132 / Chapter 17 SLA 2025 — amendment of AS 21.36.125(a); general effective date January 1, 2026