AIC 300 Questions And Answers With Verified Updates

Motion for summary judgment - A pretrial request asking the court to enter a judgment when no material facts are in dispute and the moving party is entitled to judgment as a matter of law. Comparative negligence - 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. Accuracy - In model performance evaluation, a model's correct predictions divided by its total predictions. Actuary - 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 mathematical problems and to create computer programs. Allegation - A claim made in the complaint by the plaintiff, specifying what the plaintiff expects to prove to obtain a judgment against the defendant. Average value method - A case reserving method that establishes a predetermined dollar amount of reserve for each claim as it is reported. Big data - Sets of data that are too large to be gathered and analyzed by traditional methods. Blockchain - A distributed digital ledger that facilitates secure transactions without the need for a third party. Claims representative - A person responsible for investigating, evaluating, and settling claims.Classification tree - 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 - A clause that requires the insured to carry insurance equal to at least a specified percentage of the insured's property value. Combination of nodes - A representation of data attributes in a classification tree. Compensatory damages - A payment awarded by a court to reimburse a victim for actual harm. Complaint - The allegations made by a plaintiff in a lawsuit. Complex claim - A claim that contains one or more characteristics that cause it to cost more than the average claim. Concealment - An intentional failure to disclose a material fact. Contributory negligence - 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 Process for Data Mining (CRISP-DM) - An accepted standard for the steps in any data mining process used to provide business solutions. Data mining - The analysis of large amounts of data to find new relationships and patterns that will assist in developing business solutions. Data science - 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 - A reduction in the value of property that results directly and often immediately from damage to that property. Discovery - A pretrial exchange of all relevant information between the plaintiff and defendant. Domain knowledge - Information related to the context of the information a data scientist is working with. Ethics - The study of what constitutes good and bad behavior, dealing with moral duty and obligation. Expert system method - A method of setting reserves with a software application that estimates losses and loss adjustment expenses. Federal Rules of Civil Procedure - 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) - The initial report notifying the insurer of a claim. Formula method - A method of setting claim reserves by using a mathematical formula. General damages - A monetary award to compensate a victim for losses, such as pain and suffering, that do not involve specific measurable expenses. Hard fraud - Actions that are undertaken deliberately to defraud. Holdout data - In the model training process, existing data with a known target variable that is not used as part of the training data. Indemnify - To restore a party who has sustained a loss to the same financial position that party held before the loss occurredIndirect loss - A loss that arises as a result of damage to property, other than the direct loss to the property. Individual case method - A method of setting reserves based on the claim's circumstances and the claim representative's experience in handling similar claims. Information gain - A measure of the predictive power of one or more attributes. Insurable interest - 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 - Any deliberate deception committed against an insurer or an insurance producer for the purpose of unwarranted financial gain. Internet of Things (IoT) - A network of objects that transmit data to computers. Internet of Things (IoT) - A network of objects that transmit data to each other and to central hubs through the internet. Leaf node - A terminal node of a classification tree that is used to classify an instance based on its attributes. Lift - 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 absence of the model. Loss adjustment expense (LAE) - The expense that an insurer incurs to investigate, defend, and settle claims according to the terms specified in the insurance policy. Loss ratio - A ratio that measures losses and loss adjustment expenses against earned premiums and that reflects the percentage of premiums being consumed by lossesMachine learning - Artificial intelligence in which computers continually teach themselves to make better decisions based on previous results and new data. Material fact - A fact that is significant to a decision or matter at hand. Misrepresentation - A false statement of a material fact on which a party relies. Motion in limine - A pretrial request that certain evidence be excluded from the trial. Motion to dismiss - A request that a court terminate an action because of settlement, voluntary withdrawal, or procedural defect. Precision - In model performance evaluation, a model's correct positive predictions divided by its total positive predictions. Predictive model - A model used to predict an unknown outcome by means of a defined target variable. Premium Audit - Methodical examination of a policyholder's operations, records, and books of account to determine the actual exposure units and premium for insurance coverages already provided Pro rata contribution - An approach to other insurance by which the insurers contribute to the loss payment in the proportion to which they contribute to the total amount of coverage purchased (their limits of liability). Producer - Any of several kinds of insurance personnel who place insurance and surety business with insurers and who represent either insurers, insureds, or both