ACORD Expert Data Governance & Quality Management Flashcards
6 cards from real ACE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 ACORD Expert Data Governance & Quality Management flashcards as text
What is 'master data management' (MDM) and which insurance entity type most commonly requires it?
Answer: Creating a single, authoritative record for shared entities; most critical for Party (customer/agent) data
MDM establishes a 'golden record' for entities like customers and agents that appear across multiple systems, preventing duplicate and conflicting Party records that undermine data quality.
Under ACORD standards, what does the 'Party' object typically represent?
Answer: Any entity (person, organization, or role) involved in an insurance transaction
The ACORD Party object is a universal construct covering any participant—insured, agent, claimant, vendor, or carrier—in an insurance transaction.
Which data governance control helps prevent unauthorized changes to reference data (e.g., coverage codes, state codes) in ACORD-compliant systems?
Answer: Change management and approval workflows for reference data updates
Formal change management workflows require review and approval before reference data is modified, preventing uncontrolled changes that could break ACORD message interpretations downstream.
What is 'data profiling' in the context of improving ACORD data quality?
Answer: Analyzing data sets to discover patterns, anomalies, and quality issues using statistical summaries
Data profiling examines actual data values and distributions to identify nulls, duplicates, outliers, and format violations before they propagate through ACORD exchanges.
How should an insurer handle a situation where incoming ACORD XML contains a valid but unexpected enumeration value not recognized in the local system?
Answer: Log the unknown value, map it to a default or 'other' code, and alert the data steward for review
Best practice is to handle unknown values gracefully—log them, apply a defensible default, and trigger a governance alert so the data steward can update mappings or request clarification.
Which metric is most useful for evaluating the effectiveness of an insurer's ACORD data exchange program over time?
Answer: Straight-through processing (STP) rate—the percentage of transactions processed without manual intervention
STP rate directly measures how well ACORD data quality and standards adoption are working—high-quality, standards-compliant data flows through without manual correction.