You do have to *call* Alaska to get the fee waived for the award cancellation. The waiver doesn't work online for partner awards. But you'll get your miles back and taxes refunded to the OFP.
Iceland is opening up their borders on june 15, so may not be open to refunding your seat fee.
https://www.icelandreview.com/travel...rs-on-june-15/
And this is what Allianz has to say
Am I covered if I cancel my travel plans because of a travel ban or other government-imposed restriction on travel related to COVID-19?
No, cancelling a trip because of a travel ban or other government-imposed restriction on travel directly or indirectly related to COVID-19 is generally not covered by our travel protection plans.
https://www.allianztravelinsurance.com/covid-19-faq.htm