ACORD Form Processing: All You Need To Know

The Association for Cooperative Operations Research and Development (ACORD) is a global non-profit organization founded in 1970. A group of companies founded ACORD to remove operational red tape and improve operations in the insurance industry after understanding the need for standardized insurance forms.

Understanding ACORD Form Processing

ACORD Certificate of Insurance is a universally recognized standardized document that proves insurance coverage. Almost 90% of property and casualty insurers in the US and numerous insurers worldwide have adopted it. These forms provide reliable resources for various technologies, enabling smooth data interchange in the insurance sector. These technologies include object technology, eCommerce, EDI, and XML.

Formats of ACORD forms

ACORD has led the process of creating forms across the insurance industry since its first paper form was published in 1971. ACORD forms are currently available in:

• PDF
• Electronic Fillable
• Forms
• eForms

Types of ACORD Forms

ACORD offers various forms, each with specific functions and uses in the insurance process. Here’s a closer look at some of the essential ACORD forms:

1. ACORD 25: Certificate of Liability Insurance

ACORD 25 is a crucial document reflecting the contractual agreements between clients and insurance companies. It includes:

• Manufacturer details
• Insured details
• General liability
• Automobile liability
• Excess/Umbrella liability
• Workers’ compensation and employer’s liability
• Cancellation information

This form confirms that all parties involved understand the terms of a liability insurance agreement. It helps settle disputes and provides legal security in case of necessities, eliminating confusion and misconceptions.

2. ACORD 26: Policy Certification Log

ACORD 26 records all certifications issued for a single insured, summarizing information in several other forms. It includes:

• Insured and insurer information
• Identification section
• Certificates/Evidence
• Expiry information

This form is used alongside ACORD 24, 25, 27, and 28, streamlining the certification process.

3. ACORD 27: Evidence of Property Insurance

ACORD 27 gives coverage statements to mortgage holders and loss payees, often for residential, small business, or personal properties. It consists of:

• Agency and insured information
• Property information
• Coverage information
• Remarks
• Additional interest

4. ACORD 28: Evidence of Commercial Property Insurance

ACORD 28 provides mortgage coverage information, additional insureds, and loss payees for business or personal properties. It addresses:

• Identification section
• Property information
• Coverage information
• Remarks
• Additional interest

5. ACORD 80: Homeowner Application

This form records the coverage amount for house insurance and is used in the homeowner underwriting process if unfortunate events happen at home. It consists of:

• Identification section
• Status of transaction
• Applicant information
• Coverages/Limits of Liability
• Deductibles
• Forms and endorsements
• Payment plan
• Rating/Underwriting
• Location schedule
• Prior coverage
• Loss history
• Optional coverages — Endorsements
• Additional interest
• Remarks

6. ACORD 90: Personal Auto Application

ACORD 90 includes all vehicle-related data for household applications for auto insurance. It consists of:

• Agency and applicant information
• Billing and payment plan
• Residence
• Garage location
• Vehicle description/use
• Coverage/premiums
• Driver information
• Accidents/convictions
• Additional interest
• Employment information
• Prior coverage

7. ACORD 125: Commercial Insurance Application

This form keeps track of general client data for commercial insurance policies, including contact information, previous insurance coverage, business address, and loss history. It consists of:

• Agency information
• Carrier information
• Status of transaction
• Lines of business
• Policy information
• Applicant information
• Premises information
• Additional interests
• Loss history

8. ACORD 126: Commercial General Liability Section

In addition to ACORD 125, ACORD 126 keeps track of client data on business operations, loss history, and liability exposure. It consists of:

• Agency and insured information
• Coverage and Limits
• Schedule of hazards
• Claims made
• Employee benefits liability
• Contractors
• Products and completed operations
• Additional interests or Certificate recipient

9. ACORD 127: Business Auto Section

ACORD 127 maintains records for commercial auto coverage about driver names, vehicle schedules, and business operations. It includes:

• Agency and carrier information
• Driver information
• Vehicle Description
• Additional interest/Certificate recipient

10. ACORD 130: Workers Compensation Application

This form covers corporate operations, loss history, payroll, and worker compensation policy information. It consists of:

• Status of submission
• Billing/Audit information
• Locations
• Policy information
• Individuals included/excluded
• State rating worksheet
• Premium
• Prior carrier information and loss history

11. ACORD 131: Umbrella/Excess Section

ACORD 131 captures data about high-limit excess or extended liability coverage. For rating purposes, many businesses would rather keep the applications separate. It includes:

• Identification section
• Policy information
• Employee benefits liability
• Primary and location subsidiaries
• Underlying insurance
• Care, custody, control
• Vehicles
• Additional exposures
• Remarks

12. ACORD 140: Property Section

ACORD 140 covers underwriting and rating needs for commercial properties, recording specific property information such as the insured’s commercial locations, valuations, and other specifics. It includes:

• Agency and insured information
• Premises information
• Additional coverage
• Additional interest
• Additional premises information

Conclusion: Automating ACORD Form Processing

Managing ACORD forms manually is tiresome and error-prone. Therefore, automation can greatly enhance efficiency and accuracy. Docsumo offers a great solution to automate ACORD form processing.

It helps companies to upload forms, edit and validate fields, and download data in various formats (CSV, Excel, JSON).

ACORD form processing automation streamlines the process, reduces workload, and guarantees data accuracy.

ACORD has completely transformed the insurance sector by standardizing forms and enhancing data management.

Insurance agencies can improve operational efficiency and ensure accurate and timely data management by implementing automated processing systems such as Docsumo.