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 is disputing a claim settlement amount. What is the FIRST resource they should be directed to within the insurer's process?
Answer: The insurer's internal appeals or dispute resolution process
Policyholders should exhaust the insurer's internal dispute resolution process before escalating to external parties or regulators.
When explaining an insurance policy's 'declarations page' to a new customer, which description is MOST accurate?
Answer: A summary page showing the named insured, coverage types, limits, premiums, and policy period
The declarations page is a summary document that identifies the policyholder, the coverage purchased, applicable limits, the premium, and the policy term.
A commercial customer calls requesting proof that their general liability policy includes products-completed operations coverage. What is the BEST action?
Answer: Issue an updated ACORD 25 Certificate of Insurance reflecting the products-completed operations aggregate
Issuing an updated ACORD 25 with the correct coverage details provides the customer with standardized, documented proof they can present to third parties.
Under ACORD principles, what is the key goal of standardizing insurance transactions and forms?
Answer: To enable efficient, accurate data exchange between agents, carriers, and other industry stakeholders
ACORD's core mission is to develop standards that facilitate efficient data exchange and interoperability across the insurance industry ecosystem.
A customer is deciding between actual cash value (ACV) and replacement cost value (RCV) coverage for their home. What is the key difference?
Answer: RCV pays the cost to replace or repair with new materials; ACV pays RCV minus depreciation
Replacement cost value pays to restore property without deducting depreciation, while actual cash value subtracts depreciation from the replacement cost.
A customer's business has expanded into a new state. What is the MOST important coverage consideration to address immediately?
Answer: Whether their current policies cover operations in the new state and if admitted coverage is required there
Multi-state operations may require admitted policies or specific state endorsements, and failing to address this creates significant coverage gaps.
What is the purpose of a 'waiver of subrogation' endorsement, and when might a customer need it?
Answer: It prevents the insurer from recovering claim costs from a specified third party, often required by contract
A waiver of subrogation endorsement prohibits the insurer from pursuing a specified third party (such as a general contractor or landlord) for reimbursement after paying a claim.