AIC 300 EXAMINATION TEST CLAIMS IN AN
EVOLVING WORLD 2026 COMPLETE
QUESTIONS AND VERIFIED SOLUTIONS
◉ Domain knowledge. Answer: Information related to the context of
the information a data scientist is working with
◉ Ethics. Answer: The study of what constitutes good and bad
behavior, dealing with moral duty and obligation
◉ Expert System method. Answer: A method of setting reserves with
a software application that estimates losses and loss adjustment
expenses
◉ Federal Rules of Civil Procedure. 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). Answer: The initial report notifying
the insurer of a claim
◉ Formula method. Answer: A method of setting claims reserves be
using a mathematical formula
,◉ General damages. Answer: A monetary award to compensate a
victim for losses, such as pain and suffering, that do not involve
specific, measurable expenses
◉ Hard fraud. Answer: Actions that are undertaken deliberately to
defraud
◉ Holdout data. Answer: In the model training process, existing data
with a known target variable that is not used as part of the training
data
◉ Indemnify. Answer: To restore a party who has sustained a loss to
the same financial position that party held before the loss occurred
◉ Indirect loss. Answer: A loss that arises as a result of damage to
property, other than the direct loss to the property
◉ Individual case method. Answer: A method of setting reserves
based on the claim's circumstances and the claims representative's
experience in handling similar claims
◉ Information gain. Answer: A measure of the predictive power of
one or more attributes
,◉ Insurable interest. 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. Answer: Any deliberate deception committed
against an insurer or an insurance producer for the purpose of
unwarranted financial gain
◉ Internet of Things (IoT). Answer: A network of objects that
transmit data to each other and to central hubs through the internet
◉ Leaf node. Answer: A terminal node of a classification tree that is
used to classify an instance based on its attributes
◉ Lift. 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). Answer: The expense that an
insurer incurs to investigate, defend, and settle claims according to
the terms specified in the insurance policy
, ◉ Loss ratio. Answer: A ratio that measures losses and loss
adjustment expenses against earned premiums and that reflects the
percentage of premiums being consumed by losses
◉ Machine learning. Answer: Artificial intelligence in which
computers continually teach themselves to make better decisions
based on previous results and new data
◉ Material fact. Answer: A fact that is significant to a decision or
matter at hand
◉ Misrepresentation. Answer: A false statement of a material fact on
which a party relies
◉ Motion to dismiss. Answer: A request that a court terminate an
action because of settlement, voluntary withdrawal, or procedural
defect
◉ Motion in limine. Answer: A pretrial request that certain evidence
be excluded from the trial
◉ Motion for summary judgment. Answer: A pretrial request asking
the court to enter a judgement when no material facts are in dispute
and the moving party is entitled to judgment as a matter of law
EVOLVING WORLD 2026 COMPLETE
QUESTIONS AND VERIFIED SOLUTIONS
◉ Domain knowledge. Answer: Information related to the context of
the information a data scientist is working with
◉ Ethics. Answer: The study of what constitutes good and bad
behavior, dealing with moral duty and obligation
◉ Expert System method. Answer: A method of setting reserves with
a software application that estimates losses and loss adjustment
expenses
◉ Federal Rules of Civil Procedure. 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). Answer: The initial report notifying
the insurer of a claim
◉ Formula method. Answer: A method of setting claims reserves be
using a mathematical formula
,◉ General damages. Answer: A monetary award to compensate a
victim for losses, such as pain and suffering, that do not involve
specific, measurable expenses
◉ Hard fraud. Answer: Actions that are undertaken deliberately to
defraud
◉ Holdout data. Answer: In the model training process, existing data
with a known target variable that is not used as part of the training
data
◉ Indemnify. Answer: To restore a party who has sustained a loss to
the same financial position that party held before the loss occurred
◉ Indirect loss. Answer: A loss that arises as a result of damage to
property, other than the direct loss to the property
◉ Individual case method. Answer: A method of setting reserves
based on the claim's circumstances and the claims representative's
experience in handling similar claims
◉ Information gain. Answer: A measure of the predictive power of
one or more attributes
,◉ Insurable interest. 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. Answer: Any deliberate deception committed
against an insurer or an insurance producer for the purpose of
unwarranted financial gain
◉ Internet of Things (IoT). Answer: A network of objects that
transmit data to each other and to central hubs through the internet
◉ Leaf node. Answer: A terminal node of a classification tree that is
used to classify an instance based on its attributes
◉ Lift. 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). Answer: The expense that an
insurer incurs to investigate, defend, and settle claims according to
the terms specified in the insurance policy
, ◉ Loss ratio. Answer: A ratio that measures losses and loss
adjustment expenses against earned premiums and that reflects the
percentage of premiums being consumed by losses
◉ Machine learning. Answer: Artificial intelligence in which
computers continually teach themselves to make better decisions
based on previous results and new data
◉ Material fact. Answer: A fact that is significant to a decision or
matter at hand
◉ Misrepresentation. Answer: A false statement of a material fact on
which a party relies
◉ Motion to dismiss. Answer: A request that a court terminate an
action because of settlement, voluntary withdrawal, or procedural
defect
◉ Motion in limine. Answer: A pretrial request that certain evidence
be excluded from the trial
◉ Motion for summary judgment. Answer: A pretrial request asking
the court to enter a judgement when no material facts are in dispute
and the moving party is entitled to judgment as a matter of law
