ACE ACORD Expert Compliance & Best Practices in InsurTech 2

Question 1

Under ACORD's data governance framework, which principle ensures that insurance data elements have a single, authoritative definition across all systems?

Accepted Answer

Single source of truth

Answer

Data redundancy

Answer

Data normalization

Answer

Data federation

Question 2

When implementing ACORD standards in an InsurTech environment, what is the primary purpose of an ACORD Implementation Guide?

Accepted Answer

To provide business context and rules for using ACORD data elements in specific transactions

Answer

To define proprietary extensions to ACORD schemas

Answer

To replace the ACORD data model with local definitions

Answer

To mandate specific technology platforms for compliance

Question 3

Which ACORD standard addresses the exchange of loss run data between insurers and reinsurers in the US market?

Accepted Answer

ACORD Loss Run XML

Answer

ACORD 125

Answer

ACORD AL3

Answer

ACORD CLUE

Question 4

In ACORD's compliance testing methodology, what does a 'conformance test' primarily verify?

Accepted Answer

Whether a message or document adheres to the structural rules of the ACORD standard

Answer

System performance under load

Answer

Business logic correctness of insurance calculations

Answer

Network security of data transmission

Question 5

What is the role of ACORD's Global Insurance Data Model (GIDM) in InsurTech API development?

Accepted Answer

It provides a canonical data model that enables consistent API design across different insurance lines and markets

Answer

It restricts APIs to US-only insurance products

Answer

It replaces RESTful APIs with ACORD-specific protocols

Answer

It mandates the use of SOAP web services for all insurance data exchange

Question 6

When an InsurTech company extends ACORD XML schemas with proprietary elements, which ACORD best practice should be followed?

Accepted Answer

Use ACORD-defined extension points and clearly namespace proprietary additions to avoid conflicts

Answer

Replace ACORD namespaces with company-specific namespaces entirely

Answer

Avoid using ACORD schemas if any extensions are needed

Answer

Submit proprietary extensions to replace existing ACORD elements

Question 7

Which regulatory compliance area does ACORD's data privacy framework most directly address for US-based InsurTech companies?

Accepted Answer

State insurance data privacy laws and CCPA-aligned data handling practices

Answer

Securities trading regulations

Answer

Federal banking regulations

Answer

FTC advertising standards