API 320 QUESTIONS AND ANSWERS
WITH SOLUTIONS 2024
insurtech - ANSWER The use of emerging technologies in the insurance industry
big data - ANSWER Sets of data that are too large to be gathered and analyzed by traditional methods.
predictive modeling - ANSWER A model used to predict an unknown outcome by means of a defined
target variable.
property loss exposure - ANSWER A condition that presents the possibility that a person or an
organization will sustain a loss resulting from damage (including destruction, taking, or loss of use) to
property in which that person or organization has a financial interest.
liability loss exposure - ANSWER Any condition or situation that presents the possibility of a claim
alleging legal responsibility of a person or business for injury or damage suffered by another party
open perils coverage - ANSWER A type of policy or coverage that insures against direct physical loss
unless the loss is excluded or limited by the policy
named perils coverage - ANSWER An insurance policy in which the covered causes of loss are listed, or
"named," in the policy.
occurrence - ANSWER An accident, including continuous or repeated exposure to substantially the same
general harmful conditions
inland marine insurance - ANSWER Insurance that covers many different classes of property that typically
involve an element of transportation on land.
compulsory auto insurance law - ANSWER Law that requires the owners or operators of automobiles to
carry automobile liability insurance at least equal to certain minimum limits before the vehicle can be
licensed or registered.
, financial responsibility law - ANSWER Law enacted to ensure that motorists have the financial ability to
pay for any property damage or bodily injury they might cause as a result of driving or owning an auto.
damages - ANSWER Money claimed by, or a monetary award to, a party who has suffered loss or injury
for which another party is legally responsible
compensatory damages - ANSWER A payment awarded by a court to reimburse a victim for actual harm.
punitive damages (exemplary damages) - ANSWER A payment awarded by a court to punish a defendant
for a reckless, malicious, or deceitful act to deter similar conduct; the award need not bear any relation
to a party's actual damages.
internet of things (IoT) - ANSWER A network of objects that transmit data to each other and to central
hubs through the internet.
telematics - ANSWER The use of technological devices in vehicles with wireless communication and GPS
tracking that transmit data to businesses or government agencies; some return information for the
driver
usage based insurance - ANSWER A type of auto insurance in which the premium is based on the
policyholder's driving behavior
generalized lines model (GLM) - ANSWER A statistical technique that increases the flexibility of a linear
model by linking it with a nonlinear function.
machine learning - ANSWER Artificial intelligence in which computers continually teach themselves to
make better decisions based on previous results and new data.
focus group - ANSWER A small group of customers or potential customers brought together to provide
opinions about a specific product, service, need, or other issue.
predictive modeling - ANSWER Statistical and analytical techniques used to develop models that predict
future events or behaviors
WITH SOLUTIONS 2024
insurtech - ANSWER The use of emerging technologies in the insurance industry
big data - ANSWER Sets of data that are too large to be gathered and analyzed by traditional methods.
predictive modeling - ANSWER A model used to predict an unknown outcome by means of a defined
target variable.
property loss exposure - ANSWER A condition that presents the possibility that a person or an
organization will sustain a loss resulting from damage (including destruction, taking, or loss of use) to
property in which that person or organization has a financial interest.
liability loss exposure - ANSWER Any condition or situation that presents the possibility of a claim
alleging legal responsibility of a person or business for injury or damage suffered by another party
open perils coverage - ANSWER A type of policy or coverage that insures against direct physical loss
unless the loss is excluded or limited by the policy
named perils coverage - ANSWER An insurance policy in which the covered causes of loss are listed, or
"named," in the policy.
occurrence - ANSWER An accident, including continuous or repeated exposure to substantially the same
general harmful conditions
inland marine insurance - ANSWER Insurance that covers many different classes of property that typically
involve an element of transportation on land.
compulsory auto insurance law - ANSWER Law that requires the owners or operators of automobiles to
carry automobile liability insurance at least equal to certain minimum limits before the vehicle can be
licensed or registered.
, financial responsibility law - ANSWER Law enacted to ensure that motorists have the financial ability to
pay for any property damage or bodily injury they might cause as a result of driving or owning an auto.
damages - ANSWER Money claimed by, or a monetary award to, a party who has suffered loss or injury
for which another party is legally responsible
compensatory damages - ANSWER A payment awarded by a court to reimburse a victim for actual harm.
punitive damages (exemplary damages) - ANSWER A payment awarded by a court to punish a defendant
for a reckless, malicious, or deceitful act to deter similar conduct; the award need not bear any relation
to a party's actual damages.
internet of things (IoT) - ANSWER A network of objects that transmit data to each other and to central
hubs through the internet.
telematics - ANSWER The use of technological devices in vehicles with wireless communication and GPS
tracking that transmit data to businesses or government agencies; some return information for the
driver
usage based insurance - ANSWER A type of auto insurance in which the premium is based on the
policyholder's driving behavior
generalized lines model (GLM) - ANSWER A statistical technique that increases the flexibility of a linear
model by linking it with a nonlinear function.
machine learning - ANSWER Artificial intelligence in which computers continually teach themselves to
make better decisions based on previous results and new data.
focus group - ANSWER A small group of customers or potential customers brought together to provide
opinions about a specific product, service, need, or other issue.
predictive modeling - ANSWER Statistical and analytical techniques used to develop models that predict
future events or behaviors
