The ACORD 127 is the business auto section of a commercial insurance application. It collects the driver information, vehicles, and coverage selections a carrier needs to quote commercial auto insurance. It is never sent alone: the ACORD 125 carries the applicant's general details, and the 127 adds everything specific to the vehicles and the people who drive them.
A complete 127 lets underwriting price the risk on the first pass. Gaps in driver or vehicle data come back as follow-up questions, which slow the quote when you shop the account in the commercial auto market.
What Is the ACORD 127 Form?
ACORD (Association for Cooperative Operations Research and Development) publishes the standard forms independent agencies use to submit business to carriers. The ACORD 127 form is used with the ACORD 125 for any account that insures commercial vehicles under a commercial auto policy, from a contractor with three pickups to a delivery fleet.
Most agency management system (AMS) platforms include the 127 with their other ACORD templates and fill in data already stored on the client record. Check every prefilled field, because data carried over from last year's renewal is a common source of errors.
Completing the ACORD 127 Section by Section
The layout changes a little from one edition to the next, so work from the version your carrier accepts. The sections below follow the usual order of the form.
Agency, Policy and Applicant Details
The first section repeats the agency, the carrier and its NAIC code, the policy number for a renewal, the policy effective date and the named insured. These entries should match the ACORD 125 exactly, including the SIC code and business description.
Underwriters also look at the nature of operations, years in business, and radius of operation, so have those answers ready even when they sit on the ACORD 125. A florist making local deliveries and a hauler working in interstate commerce are priced very differently, and an interstate motor carrier should show its DOT number.
Driver Information
List each driver's name, date of birth, year licensed, driver's license number, and issuing state. Some carriers also ask for marital status, percentage of use, and whether a driver is excluded. If the insured has more drivers than the form holds, add an ACORD 163 driver schedule. Most carriers run an MVR on each listed driver, so ask the client about violations and accidents before you submit. A surprise on a motor vehicle report is a common reason a quote changes after submission.
Vehicle Description and Coverages
Number each vehicle and enter the year, make, model, and body style; the vehicle identification number (VIN); the vehicle type and use; the garaging address and registration state; and the gross vehicle weight (GVW) for trucks and trailers. Add the cost new, any vehicle customization such as racks, lifts, or wraps, and the lessor for any leased vehicles.
For each unit, mark the coverages requested: auto liability coverage, personal injury protection where the state requires or offers it, medical payments coverage, uninsured motorist coverage, and underinsured motorist coverage. Physical damage coverage splits into comprehensive coverage and collision, each with its own deductible amount. Most physical damage losses settle at actual cash value unless the policy uses stated amount. Optional rental reimbursement coverage and towing and labor coverage are marked here as well.
Additional Interests and Hired Autos
In the additional interest section, list each lienholder or lessor, the vehicle it applies to, and whether it is a loss payee or an additional insured. Many of those parties later ask for a certificate of insurance, such as an ACORD 25, so accurate entries here save rework.
The hired and non-owned section asks about the cost of hire, whether employees rent vehicles in their own names, and whether staff drives their own cars on business errands. Even a business that owns no vehicles may need coverage for hired autos and non-owned autos, and the answers here drive which covered auto symbols the policy shows.
General Information Questions and Signatures
Each general information question needs a yes or no, and every yes needs an explanation. Expect questions about hauling hazardous materials, passenger transportation for a fee, contract hauling for others, and filings such as ICC or PUC. Go through them with the client rather than answering from memory, because underwriters rely on them.
For a large fleet, check the carrier's underwriting guidelines: some fleet insurance programs accept a spreadsheet in place of the form's vehicle section. The producer and the applicant sign at the end, usually when the policy is bound.
ACORD Forms That Complete the Commercial Auto ACORD Package
A complete ACORD commercial auto application usually includes:
- ACORD 125: the applicant, locations, prior carriers and loss history
- ACORD 127: drivers, vehicles, coverages, and the general information questions
- ACORD 137: the state-specific coverages and limits
- ACORD 163: extra drivers that do not fit on the 127
- ACORD 101: additional remarks that do not fit anywhere else
If the account also buys commercial general liability, add the ACORD 126. Together, these make up the ACORD business insurance package most standard carriers expect.
Frequently Asked Questions
Where can I get a fillable ACORD 127 PDF?
Your agency software is the best source, because it carries the current edition and fills in client data. ACORD licenses its forms to agencies and software vendors, so avoid outdated copies posted on random websites. Before you send the form, check the edition date printed on it against the edition your carrier accepts.
When do I need an ACORD 129?
Use it when the insured has more vehicles than the 127 has room for, or when a carrier prefers every unit on one vehicle schedule. Enter the same details for each unit: year, make, model, identification number, garaging location, cost, and coverages. Number the units in the same order you use everywhere else in the submission.
What does the ACORD 137 fillable form add?
It records the commercial auto coverage limits and options for a specific state, including the coverage symbols that tie each coverage to the autos it applies to. Many states have their own version because required coverages, such as no-fault and uninsured motorist limits, differ by state. Check that the symbols match what the client actually needs.
Should a garage or auto dealer use the ACORD 128?
Usually, yes. Auto dealers, repair shops, and service stations often need garage or dealer coverage rather than a standard business auto policy, and that section is built for those risks. Ask the carrier which section it wants, because some carriers write these accounts on their own applications.
Do carriers accept ACORD forms for every commercial auto submission?
Most standard carriers accept the ACORD commercial insurance applications for commercial auto. Some specialty and excess and surplus lines carriers ask for their own supplemental forms, especially for trucking. Send what each carrier asks for, and keep your ACORD set complete so you can shop the account with several markets.
