ACORD Expert Compliance & Best Practices in InsurTech Flashcards

Which ACORD best practice applies when an InsurTech company needs to deprecate a previously supported ACORD message version?

Answer: Notify all trading partners with adequate lead time and maintain support through a sunset period defined in the trading partner agreement

ACORD best practices require advance notification to trading partners and a defined sunset period to allow them time to migrate before support is withdrawn.

What is the primary function of ACORD's 'change management process' for standards?

Answer: To provide a governed process for proposing, reviewing, and approving modifications to ACORD standards

ACORD's change management process is a governed workflow that allows stakeholders to propose standards modifications, which are then reviewed and approved by the appropriate ACORD working groups.

Under ACORD InsurTech compliance, which scenario would most likely trigger a need for a 'gap analysis'?

Answer: When adopting a new ACORD standard version and needing to identify differences from the currently implemented version

A gap analysis is performed to identify differences between the currently implemented ACORD version and a newer version, so migration work can be scoped accurately.

How does ACORD's approach to 'semantic interoperability' differ from 'syntactic interoperability'?

Answer: Syntactic interoperability ensures correct message structure and format; semantic interoperability ensures the meaning of data elements is consistently understood across systems

Syntactic interoperability addresses format and structure conformance, while semantic interoperability ensures that the business meaning of data elements is consistently interpreted across different organizations.

When an ACORD-compliant InsurTech platform sends a policy issuance transaction, which element is typically required to uniquely identify the transaction for audit and reconciliation purposes?

Answer: A unique transaction identifier (TransactionId or equivalent) in the message header

A unique transaction identifier in the message header is required for traceability, audit trails, and reconciliation of insurance transactions across systems.

In ACORD's InsurTech best practices, what is the recommended approach for handling Personally Identifiable Information (PII) within ACORD messages?

Answer: PII should be masked, tokenized, or encrypted at the field level in addition to transport-level security

ACORD best practices recommend field-level PII protection through masking, tokenization, or encryption as a defense-in-depth measure beyond transport security alone.

Which ACORD working group is primarily responsible for developing and maintaining standards for the US personal lines insurance market?

Answer: ACORD US Property & Casualty Working Group

The ACORD US Property & Casualty Working Group develops and maintains the standards that govern personal and commercial lines insurance data exchange in the US market.