AIC 300 - Claims in an Evolving World Verified Exam Questions and
Answers Latest update 2026/2027
Question:
Adam manages a claims department for an insurer. He measures the department's performance by best
practices, claims audits, customer satisfaction data, and loss ratio. Which one of Adam's measures
refers to a system of identified internal practices that claims representatives perform to produce
superior performance?
A. Claims audits
B. Best practices
C. Loss ratio
D. Customer satisfaction data
Answer:
B. Best practices
Best practices generally refers to a system of identified internal practices that are shared with claims
reps and produce superior performance. DaJuan, a claims representative, sets a low case reserve for a
seemingly simple claim. A few weeks later it becomes apparent that the initial reserve was too low,
and he increases it in order to issue payments. More bills related to the claim arrive a few months later,
and he increases the reserve again. This process is known as Select one:
A. Readjusting.
B. Stairstepping
C. Reopening.
Question:
D. Incremental reserving.
Answer:
B. Stairstepping.
Correct. The process of repeatedly increasing the reserve for a claim is called stairstepping. Olivia is
careful to keep proper claim status notes when she handles a claim. For example, she makes sure to
only include neutral, objective comments about the parties involved. This is because claim notes
Select one:
A. Are potentially discoverable in a trial.
B. Continue for as long as the claim is open.
C. Present a chronology of the life of the claim.
Question:
D. Must be able to speak for themselves.
Answer:
A. Are potentially
discoverable in a trial. Correct. Are potentially discoverable in a trial. Seemingly innocuous comments
can be devastating when read to a jury.
,Question:
Ciara is going to college with the goal of working as a data scientist for an insurer. She will need a
strong foundation in mathematics and statistics, computer programming, domain knowledge, and data
science. Which one of Ciara's skills will require her to understand the insurance profession to which
the data is being applied? Select one:
A. Mathematics and statistics
B. Data science
C. Computer programming
D. Domain knowledge
Answer:
Domain knowledge ...is the understanding of the discipline, profession, or activity to which the data is
being applied. rin helps her employer, a multi-line insurer, to determine actual exposure and premium
for coverage. She does this by conducting detailed examinations of policyholder operations, records,
and accounting. Erin is a(n) Select one:
A. Underwriter
B. Premium auditor.
C. Claims adjuster.
Question:
D. Producer.
Answer:
Premium auditor. Premium auditors provide inventory values, contractors' equipment lists, and other
facts that are important to the claims function.
Question:
Erik is a claims manager for Taunton Insurance. He is leading a team of property claims
representatives responding to a recent tornado in Kentucky. Before sending the representatives into the
field, Erik has decided to use Internet of Things (IoT) technology to assess the damage and danger in
the area. Which one of the following IoT devices would Erik most likely use in this situation? Select
one:
A. Drones
B. Telematics
C. Smartphones
D. Sensors
Answer:
Drones Erik would most likely use drones to take photos or videos of the difficult-to-reach area and
assess the damage and danger. By using the drones, he can assess the danger without risking the safety
of the claims representatives. Telematics devices are used in automobiles to create a picture of driving
patterns. Mustafa is a data scientist who is working with a team of underwriting, IT, and actuary to
develop a predictive analytics model. The main goal of the project is to translate the insights gained
from the model they develop into business action. In Mustafa's experience, the team member that can
provide the bridge between the analytics and the business is Select one:
, A. Underwriting.
B. Data science
C. Actuary.
Question:
D. IT.
Answer:
Actuary. Actuaries are critically important to this process because they understand the business and
the analytics. The allegations contained in a summons and complaint typically serve four purposes: To
give notice, reveal facts, formulate legal causes of action and Select one:
A. State the damages sought
B. Suggest an out-of-court settlement.
C. Identify the opposing attorney(s).
Question:
D. Specify a delivery method for the response.
Answer:
A. State the
damages sought. Correct. The allegations contained in a summons and complaint typically give notice,
reveal facts, formulate legal causes of action and state the damages sought. Joy Insurance Company is
interested in using data mining to solve a problem it is having with claims fraud in one of its product
lines. The first step it should take is Select one:
A. To develop a model to analyze the data.
B. To understand the types of data to use.
C. To understand what it wants to achieve
Question:
D. To prepare the data by cleaning it.
Answer:
To understand what it wants to achieve
Answers Latest update 2026/2027
Question:
Adam manages a claims department for an insurer. He measures the department's performance by best
practices, claims audits, customer satisfaction data, and loss ratio. Which one of Adam's measures
refers to a system of identified internal practices that claims representatives perform to produce
superior performance?
A. Claims audits
B. Best practices
C. Loss ratio
D. Customer satisfaction data
Answer:
B. Best practices
Best practices generally refers to a system of identified internal practices that are shared with claims
reps and produce superior performance. DaJuan, a claims representative, sets a low case reserve for a
seemingly simple claim. A few weeks later it becomes apparent that the initial reserve was too low,
and he increases it in order to issue payments. More bills related to the claim arrive a few months later,
and he increases the reserve again. This process is known as Select one:
A. Readjusting.
B. Stairstepping
C. Reopening.
Question:
D. Incremental reserving.
Answer:
B. Stairstepping.
Correct. The process of repeatedly increasing the reserve for a claim is called stairstepping. Olivia is
careful to keep proper claim status notes when she handles a claim. For example, she makes sure to
only include neutral, objective comments about the parties involved. This is because claim notes
Select one:
A. Are potentially discoverable in a trial.
B. Continue for as long as the claim is open.
C. Present a chronology of the life of the claim.
Question:
D. Must be able to speak for themselves.
Answer:
A. Are potentially
discoverable in a trial. Correct. Are potentially discoverable in a trial. Seemingly innocuous comments
can be devastating when read to a jury.
,Question:
Ciara is going to college with the goal of working as a data scientist for an insurer. She will need a
strong foundation in mathematics and statistics, computer programming, domain knowledge, and data
science. Which one of Ciara's skills will require her to understand the insurance profession to which
the data is being applied? Select one:
A. Mathematics and statistics
B. Data science
C. Computer programming
D. Domain knowledge
Answer:
Domain knowledge ...is the understanding of the discipline, profession, or activity to which the data is
being applied. rin helps her employer, a multi-line insurer, to determine actual exposure and premium
for coverage. She does this by conducting detailed examinations of policyholder operations, records,
and accounting. Erin is a(n) Select one:
A. Underwriter
B. Premium auditor.
C. Claims adjuster.
Question:
D. Producer.
Answer:
Premium auditor. Premium auditors provide inventory values, contractors' equipment lists, and other
facts that are important to the claims function.
Question:
Erik is a claims manager for Taunton Insurance. He is leading a team of property claims
representatives responding to a recent tornado in Kentucky. Before sending the representatives into the
field, Erik has decided to use Internet of Things (IoT) technology to assess the damage and danger in
the area. Which one of the following IoT devices would Erik most likely use in this situation? Select
one:
A. Drones
B. Telematics
C. Smartphones
D. Sensors
Answer:
Drones Erik would most likely use drones to take photos or videos of the difficult-to-reach area and
assess the damage and danger. By using the drones, he can assess the danger without risking the safety
of the claims representatives. Telematics devices are used in automobiles to create a picture of driving
patterns. Mustafa is a data scientist who is working with a team of underwriting, IT, and actuary to
develop a predictive analytics model. The main goal of the project is to translate the insights gained
from the model they develop into business action. In Mustafa's experience, the team member that can
provide the bridge between the analytics and the business is Select one:
, A. Underwriting.
B. Data science
C. Actuary.
Question:
D. IT.
Answer:
Actuary. Actuaries are critically important to this process because they understand the business and
the analytics. The allegations contained in a summons and complaint typically serve four purposes: To
give notice, reveal facts, formulate legal causes of action and Select one:
A. State the damages sought
B. Suggest an out-of-court settlement.
C. Identify the opposing attorney(s).
Question:
D. Specify a delivery method for the response.
Answer:
A. State the
damages sought. Correct. The allegations contained in a summons and complaint typically give notice,
reveal facts, formulate legal causes of action and state the damages sought. Joy Insurance Company is
interested in using data mining to solve a problem it is having with claims fraud in one of its product
lines. The first step it should take is Select one:
A. To develop a model to analyze the data.
B. To understand the types of data to use.
C. To understand what it wants to achieve
Question:
D. To prepare the data by cleaning it.
Answer:
To understand what it wants to achieve
