Customer Relations & Service Flashcards
7 cards from real ACE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Customer Relations & Service flashcards as text
A policyholder calls upset because their claim was denied. What is the FIRST step a customer service representative should take?
Answer: Listen actively and acknowledge the customer's frustration
Active listening and empathy are the foundation of effective customer service, especially in emotionally charged situations.
Under ACORD standards, what information is typically required when a customer requests a Certificate of Insurance?
Answer: Certificate holder name, address, description of operations, and coverage details
ACORD COI forms require complete certificate holder information, a description of operations, and specific coverage details to be valid.
A customer asks about the difference between 'occurrence' and 'claims-made' liability policies. Which statement is ACCURATE?
Answer: Occurrence policies cover any incident that happened during the policy period, regardless of when the claim is filed
Occurrence policies provide coverage for incidents that happen during the policy period, even if the claim is reported years later.
When a commercial customer requests an endorsement to add a new location mid-term, what is the correct process?
Answer: Issue a policy endorsement with a pro-rated premium adjustment effective on the requested date
Mid-term endorsements are processed with an effective date and pro-rated premium to ensure proper coverage from the requested date.
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?
Answer: The customer's credit score improved significantly
An improved credit score typically results in a premium decrease, not an increase, as better credit is associated with lower risk.
What does the term 'subrogation' mean in the context of customer service and claims?
Answer: The insurer's right to pursue a third party responsible for a loss after paying the insured
Subrogation allows an insurer to recover claim payments by pursuing the party legally responsible for the loss.
When communicating policy changes to a customer, which method provides the BEST documentation for compliance purposes?
Answer: A written notice sent via certified mail or electronic delivery confirmation
Written notice with delivery confirmation creates a legally defensible record that the customer received required communications.