AIC 300 CLAIMS IN AN EVOLVING
WORLD EXAM PAPER 2025/2026 –
FULLY SOLVED QUESTIONS WITH
VERIFIED ANSWERS RATED A+
◉ B. Information gain
Information gain is a measure of the predictive power of one or more
attributes. Answer: In seeking to identify claims that will potentially
develop into complex and more costly claims, the data science team at
Great Midsouthwest Insurance ranks a series of attributes by their
importance to the data model. Which one of the following terms
describes the level of predictive power of each attribute?
Select one:
A. Statistical relevance
B. Information gain
C. Lift
D. Precision factor
◉ B. Data scientist.
Data science involves experimenting with data using rapidly evolving
methods to learn and provide solutions to complex problems. Answer:
Rin works for an insurer designing and using techniques to process large
,amounts of data from various sources and providing knowledge based
on the analysis of that data. Rin is a(n)
Select one:
A. Actuary.
B. Data scientist.
C. IT professional.
D. Ratemaker.
◉ D. Classification
Classification is a data mining technique an insurer applies when it
knows what information it wants to predict. Answer: Which one of the
following is a data mining technique an insurer applies when it knows
what information it wants to predict?
Select one:
A. Machine learning
B. Association rule learning
C. Cluster analysis
D. Classification
◉ C. Understand what a business wants to achieve. Answer: The first
step in the data mining process is to
Select one:
,A. Collect the data that will be used.
B. Select a data mining technique.
C. Understand what a business wants to achieve.
D. Prepare the data that will be used.
◉ A. Risk selection. Answer: Generally speaking, the most common
application of predictive modeling in insurance occurs in
Select one:
A. Risk selection.
B. Marketing.
C. Reinsurance.
D. Claims handling.
◉ D. Data science
Data science team needs to be engaged as soon as the need for a project
arises. Answer: Hanna is in IT and works on data analytics projects for
an insurer. These projects involve analyzing large amounts of data to
help underwriting to select risks and price policies. Hanna knows that
collaboration between data science, IT, underwriting, and actuary is
critical to the success of these projects. In Hanna's experience, as soon as
the need for a data project arises, the key to collaborating effectively is
to engage which one of the following teams as soon as possible?
Select one:
, A. Actuary
B. IT
C. Underwriting
D. Data science
◉ D. Cleaning.
Data should be cleaned as much as possible to eliminate missing or
inaccurate information. Answer: Part of the continuous cycle of data
mining is preparing the data to eliminate missing or inaccurate
information. This process is called
Select one:
A. Machine learning.
B. Parsing.
C. Predictive modeling.
D. Cleaning.
◉ D. Potentially complex claims
Potentially complex claims are the most difficult for insurers to identify
at the time of first report. Answer: Which one of the following types of
workers compensation claims are the most difficult for insurers to
identify at the time of first report?
Select one:
WORLD EXAM PAPER 2025/2026 –
FULLY SOLVED QUESTIONS WITH
VERIFIED ANSWERS RATED A+
◉ B. Information gain
Information gain is a measure of the predictive power of one or more
attributes. Answer: In seeking to identify claims that will potentially
develop into complex and more costly claims, the data science team at
Great Midsouthwest Insurance ranks a series of attributes by their
importance to the data model. Which one of the following terms
describes the level of predictive power of each attribute?
Select one:
A. Statistical relevance
B. Information gain
C. Lift
D. Precision factor
◉ B. Data scientist.
Data science involves experimenting with data using rapidly evolving
methods to learn and provide solutions to complex problems. Answer:
Rin works for an insurer designing and using techniques to process large
,amounts of data from various sources and providing knowledge based
on the analysis of that data. Rin is a(n)
Select one:
A. Actuary.
B. Data scientist.
C. IT professional.
D. Ratemaker.
◉ D. Classification
Classification is a data mining technique an insurer applies when it
knows what information it wants to predict. Answer: Which one of the
following is a data mining technique an insurer applies when it knows
what information it wants to predict?
Select one:
A. Machine learning
B. Association rule learning
C. Cluster analysis
D. Classification
◉ C. Understand what a business wants to achieve. Answer: The first
step in the data mining process is to
Select one:
,A. Collect the data that will be used.
B. Select a data mining technique.
C. Understand what a business wants to achieve.
D. Prepare the data that will be used.
◉ A. Risk selection. Answer: Generally speaking, the most common
application of predictive modeling in insurance occurs in
Select one:
A. Risk selection.
B. Marketing.
C. Reinsurance.
D. Claims handling.
◉ D. Data science
Data science team needs to be engaged as soon as the need for a project
arises. Answer: Hanna is in IT and works on data analytics projects for
an insurer. These projects involve analyzing large amounts of data to
help underwriting to select risks and price policies. Hanna knows that
collaboration between data science, IT, underwriting, and actuary is
critical to the success of these projects. In Hanna's experience, as soon as
the need for a data project arises, the key to collaborating effectively is
to engage which one of the following teams as soon as possible?
Select one:
, A. Actuary
B. IT
C. Underwriting
D. Data science
◉ D. Cleaning.
Data should be cleaned as much as possible to eliminate missing or
inaccurate information. Answer: Part of the continuous cycle of data
mining is preparing the data to eliminate missing or inaccurate
information. This process is called
Select one:
A. Machine learning.
B. Parsing.
C. Predictive modeling.
D. Cleaning.
◉ D. Potentially complex claims
Potentially complex claims are the most difficult for insurers to identify
at the time of first report. Answer: Which one of the following types of
workers compensation claims are the most difficult for insurers to
identify at the time of first report?
Select one:
