ACE Study Guide 2026
Everything you need to pass the ACE exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 ACE Exam Format at a Glance
📚 ACE Topics to Study (69)
✍️ Sample ACE Questions & Answers
1. A physician bills for 30-minute office visits for workers' comp claimants, but surveillance shows visits lasting under 5 minutes. This best illustrates which fraud type?
Upcoding occurs when a provider bills for a more extensive or expensive service level than was actually delivered, such as billing extended visits for brief encounters.
2. Which cancellation reason typically requires the longest advance notice to the insured under state statutes?
Nonrenewal notices generally require longer advance notice (often 30–60 days) than mid-term cancellations for nonpayment, which may only require 10 days.
3. A customer wants to know why their homeowner's insurance premium increased at renewal. Which of the following is NOT a common reason for a premium increase?
An improved credit score typically results in a premium decrease, not an increase, as better credit is associated with lower risk.
4. A customer asks about the difference between 'occurrence' and 'claims-made' liability policies. Which statement is ACCURATE?
Occurrence policies provide coverage for incidents that happen during the policy period, even if the claim is reported years later.
5. Which regulatory concept requires an insurer to treat all similarly situated policyholders consistently in claims handling?
The duty of good faith and fair dealing requires insurers to handle all similarly situated claimants consistently and without arbitrary discrimination.
6. What is the primary function of ACORD messaging standards?
ACORD messaging standards facilitate the secure and standardized exchange of insurance data between different entities.