ACE Documentation & Reporting 3 — Questions and Answers
Question 1: Under ACORD standards, which element in a homeowners submission captures the year the dwelling was constructed?
- YearBuilt (Correct answer)
- ConstructionDate
- DwellingAge
- BuildYear
Correct answer: YearBuilt
The 'YearBuilt' element is the ACORD standard field used to capture the construction year of a dwelling.
Question 2: Which ACORD form is the standard Vehicle Schedule used when documenting multiple vehicles on a commercial auto policy?
- ACORD 59
- ACORD 165 (Correct answer)
- ACORD 71
- ACORD 91
Correct answer: ACORD 165
ACORD 165 is the Commercial Auto Vehicle Schedule used to list and describe multiple vehicles on a commercial policy.
Question 3: When documenting a workers' compensation policy using ACORD forms, which form captures the employer's payroll by classification code?
- ACORD 130
- ACORD 140
- ACORD 133 (Correct answer)
- ACORD 120
Correct answer: ACORD 133
ACORD 133 is the Workers Compensation Schedule of Locations used to document payroll by classification code and location.
Question 4: In ACORD data exchange, what is the function of a 'TransactionEffectiveDate' versus a 'PolicyEffectiveDate'?
- They are synonymous and interchangeable
- TransactionEffectiveDate marks when a mid-term change takes effect; PolicyEffectiveDate marks policy inception (Correct answer)
- TransactionEffectiveDate is for audits only; PolicyEffectiveDate is for new business
- TransactionEffectiveDate applies only to cancellations
Correct answer: TransactionEffectiveDate marks when a mid-term change takes effect; PolicyEffectiveDate marks policy inception
TransactionEffectiveDate indicates when a specific transaction (endorsement, change) takes effect, while PolicyEffectiveDate reflects the original policy inception date.
Question 5: Which ACORD standard report format is most commonly used for EDI transactions between agencies and carriers in personal lines?
- ACORD XML
- ACORD AL3 (Correct answer)
- ACORD CSV
- ACORD EDIFACT
Correct answer: ACORD AL3
ACORD AL3 is the legacy standard format widely used for personal lines EDI transactions between agencies and carriers.
Question 6: What is the significance of the 'PolicyNumber' field being marked as a required element in ACORD renewal transaction schemas?
- It links the renewal to the expiring policy for continuity tracking (Correct answer)
- It is used only for premium billing purposes
- It identifies the agent's license number
- It serves as the claim reference number
Correct answer: It links the renewal to the expiring policy for continuity tracking
A required PolicyNumber in renewal transactions ensures the new term is linked to the expiring policy, maintaining continuity in policy records.
Question 7: When completing an ACORD Cancellation/Reduction in Coverage form, which reason code indicates cancellation at the insured's request?
- 10
- 02 (Correct answer)
- 05
- 15
Correct answer: 02
ACORD reason code 02 indicates cancellation at the insured's own request, distinguishing it from insurer-initiated cancellations.
ACE Documentation & Reporting 3
Under ACORD standards, which element in a homeowners submission captures the year the dwelling was constructed?