FDU-INS Insurance Domain Knowledge (ACORD-Based)
ACORD (Association for Cooperation in Operations Research and Development) defines the insurance industry's data standards. This project covers Personal Lines — Auto (ACORD 90) and Homeowners (ACORD 80).
Core Terminology
| Term | Definition | ACORD Context |
|---|---|---|
| Renewal | Policy renewal. Comparing Prior vs Renewal is the core workflow | ACORD 80/90 Status: Renew |
| Endorsement | Mid-term policy change or rider. Expands/restricts coverage scope | ACORD 70 (HO), 71 (Auto): change type A/C/D |
| Premium | Insurance premium. Rate of change at renewal is the primary risk indicator | ACORD WrittenAmt |
| Deductible | Amount the insured pays first before a claim is covered | ACORD DeductibleAmt |
| Liability Limit | Liability cap. A protected field that must never be auto-reduced | ACORD BI, PD, Coverage E |
| Coverage Dropped | Coverage item removed. Flagged when True→False or amount decreases | DiffFlag.COVERAGE_DROPPED |
| Material Change | A change with substantial impact on coverage scope | LLM endorsement_comparison target |
| Risk Signal | Risk factors extracted from renewal notes (claims history, property condition, etc.) | LLM risk_signal_extractor output |
| Bundle | Auto + Home package for the same customer. Discount eligible; risk when unbundled | Core concept in Portfolio analysis |
| SR-22 | High-risk driver certificate. Minimum insurance proof required by the state | ACORD Driver field |
Coverage Types (ACORD Code Mapping)
Auto Coverages
| ACORD Code | Name | Current Model Field | Notes |
|---|---|---|---|
BI |
Bodily Injury | bodily_injury_limit |
split limit "100/300" |
PD |
Property Damage | property_damage_limit |
|
COLL |
Collision | collision_deductible |
|
COMP |
Comprehensive | comprehensive_deductible |
|
UM |
Uninsured Motorist | uninsured_motorist |
|
MEDPM |
Medical Payments | medical_payments |
|
TL |
Towing/Roadside | roadside_assistance |
bool only — ACORD uses amount |
RENTAL |
Rental Reimbursement | rental_reimbursement |
bool only — ACORD uses daily/max limit |
UNDUM |
Underinsured Motorist | not implemented | separate from UM, required in many states |
PIP |
Personal Injury Protection | not implemented | required in no-fault states |
UMPD |
UM Property Damage | not implemented | separate coverage in some states |
Home Coverages
| ACORD Code | Name | Current Model Field | Notes |
|---|---|---|---|
DWELL |
Coverage A (Dwelling) | coverage_a_dwelling |
protected field |
OTSTR |
Coverage B (Other Structures) | coverage_b_other_structures |
typically 10% of A |
PP |
Coverage C (Personal Property) | coverage_c_personal_property |
|
ALE |
Coverage D (Loss of Use) | coverage_d_loss_of_use |
|
PL |
Coverage E (Liability) | coverage_e_liability |
protected field |
MEDPM |
Coverage F (Medical) | coverage_f_medical |
|
WIND |
Wind/Hail | wind_hail_deductible |
deductible only |
| — | Water Backup | water_backup |
bool only — ACORD uses limit amount |
EQ |
Earthquake | not implemented | near-mandatory in CA/WA/OR |
FLOOD |
Flood | not implemented | separate NFIP policy |
ACORD Gap Analysis — Known Limitations of Current Models
High Priority (Directly impacts renewal review)
- UIM/PIP/UMPD not implemented — Cannot compare state-required coverages
- No amounts on boolean coverages — Cannot compare limits for rental($30/day), roadside($75/occ), water_backup($5K), etc.
- No Loss History — ACORD 80/90 Prior Loss section. Key factor in renewal premium determination
- No HO Form Type — HO-3(broad), HO-5(open), HO-6(condo), etc. Fundamentally different coverage scopes
- No Territory Code — Basic variable in premium calculation
Medium Priority (Improves analysis precision)
- Driver DOB — ACORD standard uses DOB instead of age. Enables exact age calculation
- Vehicle annual mileage —
EstimatedAnnualDistance. Major premium factor - Driver relationship/marital status —
RelationshipToInsured,MaritalStatus. Discount factors - Endorsement limit/deductible — Cannot compare endorsement coverage limits
- Prior Carrier — ACORD 80 Prior Coverage section. Renewal context
Protected Fields — Never auto-modify
Per ACORD standards, reducing these fields carries legal/contractual risk:
bodily_injury_limit— Bodily injury liability limitproperty_damage_limit— Property damage liability limituninsured_motorist— Uninsured motorist coveragecoverage_a_dwelling— Dwelling reconstruction costcoverage_e_liability— Personal liability
Endorsement Form System
ACORD uses a Form Number system rather than a single code list:
- Auto: PP series (PP 03 06, PP 03 22, PP 03 23, etc.)
- Home: HO series (HO 04 10, HO 04 61, HO 04 90, HO 04 95, etc.)
- Change Request: ACORD 70 (HO), ACORD 71 (Auto) — type A(Add)/C(Change)/D(Delete)
Currently Endorsement.code is free text. Validation can be added when ISO/AAIS form number mapping is implemented.
Application Rules
- When adding new coverage fields: Reference the ACORD code mapping tables above for naming
- When adding DiffFlags: Consider the industry importance of the coverage (liability types → URGENT)
- When modifying LLM prompts: Verify the exact meaning of insurance terms before use
- When adding Quote strategies: Re-verify the protected fields list. Protected fields cannot be changed in any strategy