ACE Agency Management Systems & Operations

Question 1

Which ACORD standard primarily governs the electronic exchange of policy and account data between agencies and carriers?

Accepted Answer

AL3 (Agency/Company Interface)

Answer

ACORD XML Framework

Answer

EDI 834 Transaction Set

Answer

ISO Filing Standards

Question 2

In an agency management system (AMS), what does the term 'suspense' typically refer to?

Accepted Answer

Unresolved policy transactions awaiting follow-up action

Answer

Premium payments held in escrow

Answer

Claims awaiting adjuster assignment

Answer

Policies in a lapse grace period

Question 3

Which ACORD form is the standard certificate of liability insurance most commonly used by US agencies?

Accepted Answer

ACORD 25

Answer

ACORD 27

Answer

ACORD 28

Answer

ACORD 75

Question 4

What is the primary purpose of an agency's 'book of business' report in an AMS?

Accepted Answer

To provide a summary of all policies managed by the agency by premium, client, or line of business

Answer

To list all outstanding claims filed in the current year

Answer

To document carrier appointment agreements

Answer

To track producer licensing renewals

Question 5

Under ACORD's Real-Time/Download standards, which transaction type allows an agent to request an updated policy status from a carrier system instantly?

Accepted Answer

Policy Inquiry (Real-Time)

Answer

AL3 Download

Answer

ACORD XML Batch

Answer

EDI 271 Eligibility Response

Question 6

When an agency management system performs a 'download,' what is the most common data transferred from carrier to agency?

Accepted Answer

Policy changes, renewals, cancellations, and billing information

Answer

New business submissions only

Answer

Claims settlement payments

Answer

Producer commission statements only

Question 7

Which of the following best describes the role of an 'expiration list' in agency operations?

Accepted Answer

A report listing policies due for renewal within a defined time frame

Answer

A list of lapsed policies no longer eligible for reinstatement

Answer

A record of expired producer licenses

Answer

A log of claims closed without payment