ACE Customer Relations & Service 3

Question 1

A commercial client's policy is about to cancel for non-payment. What is the BEST customer service approach?

Accepted Answer

Contact the client proactively before the cancellation date to discuss payment options

Answer

Proactive outreach before cancellation demonstrates good faith and gives the client an opportunity to resolve the issue before losing coverage.

Question 2

Which ACORD form is used to report basic property and casualty insurance information for a new applicant?

Accepted Answer

ACORD 125 - Commercial Insurance Application

Answer

ACORD 125 is the standard Commercial Insurance Application used to capture general applicant information for commercial P&C policies.

Question 3

A customer requests copies of all their policy documents. Under most state regulations, how quickly must an agency respond?

Accepted Answer

Within a reasonable timeframe, often 10-15 business days as defined by state law

Answer

Most states require insurers and agents to provide policy documents within a reasonable period, typically defined by state regulation as 10-15 business days.

Question 4

What is the primary purpose of an 'Additional Insured' endorsement from a customer service perspective?

Accepted Answer

To extend liability protection to a third party who has a business relationship with the named insured

Answer

An Additional Insured endorsement extends the primary policy's liability protection to a specified third party, often required by contract.

Question 5

A customer is confused about the difference between their deductible and out-of-pocket maximum on their health plan. Which explanation is CORRECT?

Accepted Answer

The deductible is what you pay before insurance kicks in; the out-of-pocket maximum is the most you'll pay in a year

Answer

The deductible is the initial amount paid before insurance coverage begins, while the out-of-pocket maximum caps total annual patient cost-sharing.

(ACE) ACORD Certified Expert Practice Test

(ACE) ACORD Certified Expert Practice Test

ACE Customer Relations & Service 3