AIC 300 Exam Questions with Correct Answers
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 judgement 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 required the insured to carry insurance equal to at least a specified percentage of
the insured property's value
Combination of nodes
A representation of data attributes in a classification tree
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
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 Standard 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 claims reserves be 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
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 judgement 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 required the insured to carry insurance equal to at least a specified percentage of
the insured property's value
Combination of nodes
A representation of data attributes in a classification tree
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
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 Standard 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 claims reserves be 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
