ACE Customer Relations & Service 2

Question 1

A policyholder calls upset because their claim was denied. What is the FIRST step a customer service representative should take?

Accepted Answer

Listen actively and acknowledge the customer's frustration

Answer

Active listening and empathy are the foundation of effective customer service, especially in emotionally charged situations.

Question 2

Under ACORD standards, what information is typically required when a customer requests a Certificate of Insurance?

Accepted Answer

Certificate holder name, address, description of operations, and coverage details

Answer

ACORD COI forms require complete certificate holder information, a description of operations, and specific coverage details to be valid.

Question 3

A customer asks about the difference between 'occurrence' and 'claims-made' liability policies. Which statement is ACCURATE?

Accepted Answer

Occurrence policies cover any incident that happened during the policy period, regardless of when the claim is filed

Answer

Occurrence policies provide coverage for incidents that happen during the policy period, even if the claim is reported years later.

Question 4

When a commercial customer requests an endorsement to add a new location mid-term, what is the correct process?

Accepted Answer

Issue a policy endorsement with a pro-rated premium adjustment effective on the requested date

Answer

Mid-term endorsements are processed with an effective date and pro-rated premium to ensure proper coverage from the requested date.

Question 5

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?

Accepted Answer

The customer's credit score improved significantly

Answer

An improved credit score typically results in a premium decrease, not an increase, as better credit is associated with lower risk.

(ACE) ACORD Certified Expert Practice Test

(ACE) ACORD Certified Expert Practice Test

ACE Customer Relations & Service 2