ACE ACORD Expert Messaging & Forms Implementation 4

Question 1

In ACORD XML, which data type is used for monetary amounts to avoid floating-point precision errors?

Accepted Answer

xs:decimal

Answer

ACORD XML schemas use xs:decimal for monetary amounts because it provides exact decimal representation without floating-point rounding errors.

Question 2

An agency receives an ACORD IVANS download with a Policy Change transaction but the effective date is in the future. How should a compliant AMS handle this?

Accepted Answer

Store the pending change and apply it to the policy record on the specified effective date

Answer

Compliant AMS implementations must store future-dated policy changes and apply them when the effective date is reached, preserving accurate policy history.

Question 3

What is the purpose of the ACORD 'Loss Information' section in the ACORD 125 Commercial Insurance Application?

Accepted Answer

Documents prior claims history and outstanding losses for underwriting purposes

Answer

The Loss Information section of ACORD 125 captures prior claims and loss history, which underwriters use to assess risk and set premiums.

Question 4

Which ACORD Real-Time transaction type allows an agency to retrieve a list of open claims for a specific policy?

Accepted Answer

ClaimStatusInqRq

Answer

ClaimStatusInqRq is the ACORD Real-Time transaction used to inquire about the status of open claims associated with a policy.

Question 5

In ACORD XML endorsement processing, what does a 'ChangeTypeCd' value of 'Add' signify within a coverage element?

Accepted Answer

A new coverage is being added to the policy mid-term

Answer

ChangeTypeCd='Add' within an endorsement transaction indicates that a new coverage or item is being added to the existing policy.

(ACE) ACORD Certified Expert Practice Test

(ACE) ACORD Certified Expert Practice Test

ACE ACORD Expert Messaging & Forms Implementation 4