AIC 300 CORE REVIEWS ANSWERS AND QUESTIONS
SET A+
Data science involves experimenting with data using rapidly evolving methods to learn
and provide solutions to complex problems. - ✔✔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. - ✔✔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. - ✔✔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. - ✔✔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. -
✔✔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. - ✔✔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. - ✔✔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:
A. Catastrophic claims
B. Medical-only claims
C. Potentially minor claims
D. Potentially complex claims
✔✔B. A legitimate claim is exaggerated.
, Soft fraud, also called opportunity fraud, occurs when a legitimate claim is exaggerated.
- ✔✔Soft fraud, also called opportunity fraud, occurs when
Select one:
A. An application for insurance contains untrue information.
B. A legitimate claim is exaggerated.
C. A loss is triggered intentionally.
D. A claim is filed for a loss that did not occur.
✔✔B. Continue with her investigation.
Continue with her investigation. Indicators of fraud are not proof of fraud. - ✔✔Carla is
investigating a claim for a stolen car. The insured provided a copy of the police report,
but she notices that the account in the police report differs from the insured's version of
events. At this point, Carla should
Select one:
A. Refer the case to the SIU.
B. Continue with her investigation.
C. Deny the claim.
D. Contact the police.
✔✔A. Data mining.
Data mining. This is using computers to analyze vast amounts of data to detect trends. -
✔✔Benjamin is with the SIU department of an insurer. His company developed
technology to identify patterns related to fraudulent claims activity. He is using a
program to analyze claims data to identify similarities or connections that might indicate
fraud. Benjamin is utilizing
Select one:
A. Data mining.
B. Telematics.
C. Claims audits.
D. Wearables.
✔✔C. Opportunity fraud. - ✔✔Soft fraud occurs when a claim is exaggerated and is also
referred to as
Select one:
A. Victimless fraud.
B. Reimbursement fraud.
C. Opportunity fraud.
D. Financial fraud.
✔✔B. Telematics.
Telematics are used to collect data on personal autos, commercial vehicles, products,
shipments, machinery, smart devices, and workers. - ✔✔Larissa is an auto claim
SET A+
Data science involves experimenting with data using rapidly evolving methods to learn
and provide solutions to complex problems. - ✔✔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. - ✔✔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. - ✔✔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. - ✔✔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. -
✔✔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. - ✔✔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. - ✔✔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:
A. Catastrophic claims
B. Medical-only claims
C. Potentially minor claims
D. Potentially complex claims
✔✔B. A legitimate claim is exaggerated.
, Soft fraud, also called opportunity fraud, occurs when a legitimate claim is exaggerated.
- ✔✔Soft fraud, also called opportunity fraud, occurs when
Select one:
A. An application for insurance contains untrue information.
B. A legitimate claim is exaggerated.
C. A loss is triggered intentionally.
D. A claim is filed for a loss that did not occur.
✔✔B. Continue with her investigation.
Continue with her investigation. Indicators of fraud are not proof of fraud. - ✔✔Carla is
investigating a claim for a stolen car. The insured provided a copy of the police report,
but she notices that the account in the police report differs from the insured's version of
events. At this point, Carla should
Select one:
A. Refer the case to the SIU.
B. Continue with her investigation.
C. Deny the claim.
D. Contact the police.
✔✔A. Data mining.
Data mining. This is using computers to analyze vast amounts of data to detect trends. -
✔✔Benjamin is with the SIU department of an insurer. His company developed
technology to identify patterns related to fraudulent claims activity. He is using a
program to analyze claims data to identify similarities or connections that might indicate
fraud. Benjamin is utilizing
Select one:
A. Data mining.
B. Telematics.
C. Claims audits.
D. Wearables.
✔✔C. Opportunity fraud. - ✔✔Soft fraud occurs when a claim is exaggerated and is also
referred to as
Select one:
A. Victimless fraud.
B. Reimbursement fraud.
C. Opportunity fraud.
D. Financial fraud.
✔✔B. Telematics.
Telematics are used to collect data on personal autos, commercial vehicles, products,
shipments, machinery, smart devices, and workers. - ✔✔Larissa is an auto claim
