How to Complete the Acord 127
As you begin a career in insurance, it will be critical that you develop a familiarity with applications used in the Agency Management System (AMS). Continue reading for more details on the applications you will be using every day to manage client information.
What Are Acord Forms?
ACORD forms are universally recognized documents that contain information which most, if not all, insurance carriers require to be completed in order to provide a quote back to the agency. There are several Acord forms and each serves a purpose specific to the type of coverage that it represents. Of all of the forms, however, one you will see frequently is the Acord 127.
What is an Acord 127 form?
The Acord 127 form is more commonly known as the Business Auto Section This application is used to record general client information including things like driver lists, vehicle schedules, and business operation information.
You may be looking at this and wondering if you need to know how to fill out accord 127? The answer is, yes! This application is used on every commercial auto policy so it is important that you understand how to complete an Acord 127.
Let’s take a look at a few key parts of the form that you will want to make sure you pay attention to when completing the Acord 127:
Page 1 of the Acord 127 will start off looking for a simple set of information: The Agency Name and the Named Insured and the policy Effective Date. This information may be filled in by the Agency Management System, but be sure to complete if using this form outside of the AMS.
The following section of the form will be for the purpose of collecting Driver Information. It is important to provide as complete of information regarding Name, Date of Birth, the year the driver was licensed, their Driver’s License # and State in which their license is issued. Each driver will need to be numbered sequentially in the left-hand column of the form.
Please note, if the insured has more than 13 drivers, you will need to use an Acord 163 to record the additional driver information.
At the end of Page 3 and into Page 4, you will find the General Information section of the application. There are a series of 17 questions used to help provide more information on the operations of the business. Each question must be answered by indicating “yes” or “no” in the right-hand column. Additional explanation will be needed for any questions which you answer “yes.”
After you’ve completed the General Information questions, you will move onto the Additional Interest/Certificate Recipient area. This part of the application will be used to document any parties who have an additional interest in any of the vehicles. For example, if an insured received a commercial auto loan from a bank to purchase a vehicle, the “LIENHOLDER” box should be checked. Be sure to complete the name and address for the additional interest and include the information for which vehicle the party has additional interest in.
Once you finish entering the Additional Interest information, you can move onto Page 3 of the application which is dedicated to Vehicle Description details for autos that need to be covered under the policy.
Vehicles should be numbered in sequence starting with #1. You will need to be prepared to provide as much vehicle information as possible including: Year, Make, Model, VIN # (Vehicle Identification Number), Vehicle Type (Private Passenger, Special or Commercial), Garaging Address, Registration State, Gross Vehicle Weight, Vehicle Classification, Vehicle Use, Coverage Needed, Cost New, and Deductibles for Comprehensive and Collision coverage if the insured is electing to have those on the vehicle.
You will see there are enough spaces for 4 vehicles. You will need an Acord 129 to list any additional vehicles.
The end of Page 4 provides spaces for signature from the Producer and Insured. These will not be required during the quoting process but will need to be obtained when the policy is bound.
Other Important Notes:
An Acord 127 fillable form (as well as other Acord forms) should be available in your Agency Management System. You can complete the form and then send an Acord 127 PDF to the client to review and sign.
The Acord 127 should always be accompanied by the Acord 125 and Acord 137. The Acord 125 provides details about the insured not requested in any other forms while the Acord 137 is used to specify Commercial Auto Coverage limits and Covered Auto Symbols.
Some of the details reviewed will pre-fill in your AMS. This will save you time when completing the Acord 127 form.