ACE Documentation & Reporting 2 — Questions and Answers
Question 1: Which ACORD form is specifically used to document property insurance binders in the United States?
- ACORD 75 (Correct answer)
- ACORD 25
- ACORD 28
- ACORD 36
Correct answer: ACORD 75
ACORD 75 is the Insurance Binder form used to document temporary property insurance coverage.
Question 2: In ACORD data standards, what does the element 'InsuredMailingAddress' primarily capture?
- The insured's physical risk location
- The insured's address for correspondence and billing (Correct answer)
- The agent's office address
- The claims department mailing address
Correct answer: The insured's address for correspondence and billing
InsuredMailingAddress captures the address where the insured receives correspondence, which may differ from the physical risk location.
Question 3: When an insurer issues a Certificate of Liability Insurance, which party typically requests this document?
- The insured's underwriter
- A third party requiring proof of coverage (Correct answer)
- The state insurance department
- The reinsurer
Correct answer: A third party requiring proof of coverage
Certificates of Liability Insurance are typically requested by third parties (certificate holders) who need proof that the insured carries adequate coverage.
Question 4: What is the primary purpose of the ACORD Loss Run Report (ACORD 867)?
- To summarize an insured's prior claims history (Correct answer)
- To document new policy endorsements
- To report premium audit results
- To request cancellation of a policy
Correct answer: To summarize an insured's prior claims history
ACORD 867 is used to request or provide a summary of an insured's historical claims (loss runs) for underwriting purposes.
Question 5: In ACORD XML, which namespace is required to ensure proper schema validation of ACORD P&C messages?
- http://www.w3.org/2001/XMLSchema
- http://www.ACORD.org/standards/PC_Surety (Correct answer)
- http://schemas.microsoft.com/winfx
- http://www.opentravel.org/OTA
Correct answer: http://www.ACORD.org/standards/PC_Surety
ACORD P&C XML messages must reference the official ACORD namespace (http://www.ACORD.org/standards/PC_Surety) for schema validation.
Question 6: Which ACORD form is used to report a first notice of loss for commercial auto claims?
- ACORD 1
- ACORD 3
- ACORD 20 (Correct answer)
- ACORD 5
Correct answer: ACORD 20
ACORD 20 is the Commercial Auto Loss Notice used to report first notice of loss on commercial auto policies.
Question 7: What does the 'EffectiveDate' field in an ACORD policy document represent?
- The date the application was signed
- The date coverage begins under the policy (Correct answer)
- The date the policy was issued by the insurer
- The date the premium was received
Correct answer: The date coverage begins under the policy
The EffectiveDate field indicates when insurance coverage officially begins, which may differ from the issue or application date.
ACE Documentation & Reporting 2
Which ACORD form is specifically used to document property insurance binders in the United States?