Accuracy - Correct Answer In model performance evaluation, a model's correct predictions divided by its total predictions
Actuary - Correct Answer A person who uses mathematical methods to analyze insurance data for various purposes, such as to develop insurance rates or set claim reserves
...
algorithm an operational sequence used to solve ma
allegation a claim made in the complaint by the pl
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AIC 300 Questions And Quality Answers 2025
Accuracy - Correct Answer In model performance evaluation, a model's correct
predictions divided by its total predictions
Actuary - Correct Answer A person who uses mathematical methods to analyze
insurance data for various purposes, such as to develop insurance rates or set claim
reserves
Algorithm - Correct Answer An operational sequence used to solve mathematical
problems and to create computer programs
Allegation - Correct Answer A claim made in the complaint by the plaintiff, specifying
what the plaintiff expects to prove to obtain a judgement against the defendant
Average value method - Correct Answer A case reserving method that establishes a
predetermined dollar amount of reserve for each claim as it is reported
Big data - Correct Answer Sets of data that are too large to be gathered and analyzed
by traditional methods
Blockchain - Correct Answer A distributed digital ledger that facilitates secure
transactions without the need for a third party
Claims representative - Correct Answer A person responsible for investigating,
evaluating, and settling claims
Classification tree - Correct Answer A supervised learning technique that uses a
structure similar to a tree to segment data according to known attributes to determine
the value of a categorical target variable
Coinsurance clause - Correct Answer A clause that required the insured to carry
insurance equal to at least a specified percentage of the insured property's value
Combination of nodes - Correct Answer A representation of data attributes in a
classification tree
Comparative negligence - Correct Answer A common-law principle that requires both
parties to a loss to share the financial burden of the bodily injury or property damage
according to their respective degrees of fault
Compensatory damages - Correct Answer A payment awarded by a court to reimburse
a victim for actual harm
Complaint - Correct Answer The allegations made by a plaintiff in a lawsuit
,Complex claim - Correct Answer A claim that contains one or more characteristics that
cause it to cost more than the average claim
Concealment - Correct Answer An intentional failure to disclose a material fact
Contributory Negligence - Correct Answer A common-law principle that prevents a
person who has been harmed from recovering damages if that person's own negligence
contributed in any way to the harm
Cross Industry Standard Process for Data Mining (CRISP DM) - Correct Answer An
accepted standard for the steps in any data mining process used to provide business
solutions
Data mining - Correct Answer The analysis of large amounts of data to find new
relationships and patterns that will assist in developing business solutions
Data science - Correct Answer An interdisciplinary field involving the design and use of
techniques to process very large amounts of data from a variety of sources and to
provide knowledge based on the data
Direct loss - Correct Answer A reduction in the value of property that results directly
and often immediately from damage to that property
Discovery - Correct Answer A pretrial exchange of all relevant information between the
plaintiff and defendant
Domain knowledge - Correct Answer Information related to the context of the
information a data scientist is working with
Ethics - Correct Answer The study of what constitutes good and bad behavior, dealing
with moral duty and obligation
Expert System method - Correct Answer A method of setting reserves with a software
application that estimates losses and loss adjustment expenses
Federal Rules of Civil Procedure - Correct Answer A set of rules established to ensure
that civil actions and procedures move through the United States district courts as
quickly as possible
First notice of loss (FNOL) - Correct Answer The initial report notifying the insurer of a
claim
Formula method - Correct Answer A method of setting claims reserves be using a
mathematical formula
, General damages - Correct Answer A monetary award to compensate a victim for
losses, such as pain and suffering, that do not involve specific, measurable expenses
Hard fraud - Correct Answer Actions that are undertaken deliberately to defraud
Holdout data - Correct Answer In the model training process, existing data with a
known target variable that is not used as part of the training data
Indemnify - Correct Answer To restore a party who has sustained a loss to the same
financial position that party held before the loss occurred
Indirect loss - Correct Answer A loss that arises as a result of damage to property,
other than the direct loss to the property
Individual case method - Correct Answer A method of setting reserves based on the
claim's circumstances and the claims representative's experience in handling similar
claims
Information gain - Correct Answer A measure of the predictive power of one or more
attributes
Insurable interest - Correct Answer An interest in the subject of an insurance policy
that is not unduly remote and that would cause the interested party to suffer financial
loss if an insured event occurred
Insurance fraud - Correct Answer Any deliberate deception committed against an
insurer or an insurance producer for the purpose of unwarranted financial gain
Internet of Things (IoT) - Correct Answer A network of objects that transmit data to
each other and to central hubs through the internet
Leaf node - Correct Answer A terminal node of a classification tree that is used to
classify an instance based on its attributes
Lift - Correct Answer In model performance evaluation, the percentage of positive
predictions made by the model divided by the percentage of positive predictions that
would be made in the absence of the model
Loss adjustment expense (LAE) - Correct Answer The expense that an insurer incurs
to investigate, defend, and settle claims according to the terms specified in the
insurance policy
Loss ratio - Correct Answer A ratio that measures losses and loss adjustment
expenses against earned premiums and that reflects the percentage of premiums being
consumed by losses
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