Customer Relations & Service Flashcards
7 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 7 Customer Relations & Service flashcards as text
A customer asks why their auto claim check was made payable to both them and their lienholder. What is the CORRECT explanation?
Answer: The lienholder has a financial interest in the vehicle and must co-sign to protect that interest
Lienholders are named on claim payments because they have a secured financial interest in the collateral until the loan is paid off.
In ACORD data standards, what is the significance of maintaining consistent data across all customer-facing documents?
Answer: Consistent data reduces errors, improves compliance, and enables straight-through processing across systems
ACORD standards promote data consistency to reduce re-keying errors, ensure regulatory compliance, and enable efficient electronic data interchange.
A long-time customer threatens to move their business to a competitor after a rate increase. What is the BEST response strategy?
Answer: Review their coverage needs, explain the value provided, and explore all available discounts before they leave
A comprehensive coverage review and value discussion often reveals retention opportunities before the customer makes a final decision.
When a customer reports a potential workers' compensation claim, what information must be collected FIRST?
Answer: Details of the injury, date of occurrence, name of injured employee, and description of incident
Initial workers' comp claims intake requires basic incident facts—what happened, when, and who was involved—to start the claims process promptly.
What does 'E&O' stand for in the context of insurance agency customer service, and why is it relevant?
Answer: Errors and Omissions — professional liability coverage protecting agents from mistakes or oversights
Errors and Omissions (E&O) insurance protects agents from liability claims arising from mistakes or failures to act properly in their professional capacity.
A customer wants to lower their homeowner's insurance premium. Which suggestion would likely result in the LARGEST discount?
Answer: Increasing the deductible from $500 to $2,500
Significantly increasing the deductible shifts more financial risk to the insured, which typically results in the largest percentage reduction in premium.
Which ACORD form is typically used to provide evidence of property insurance to a mortgagee or lender?
Answer: ACORD 27 - Evidence of Property Insurance
ACORD 27 is the standardized form used to provide evidence of property insurance coverage to interested third parties such as lenders.