AIC 300 Exam Questions| Already
Answered| GRADED A+
Accuracy - ANSWER-In model performance evaluation, a model's correct predictions divided by its total
predictions
Actuary - ANSWER-A person who uses mathematical methods to analyze insurance data for various
purposes, such as to develop insurance rates or set claim reserves
Algorithm - ANSWER-An operational sequence used to solve mathematical problems and to create
computer programs
Allegation - ANSWER-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 - ANSWER-A case reserving method that establishes a predetermined dollar
amount of reserve for each claim as it is reported
Big data - ANSWER-Sets of data that are too large to be gathered and analyzed by traditional methods
Blockchain - ANSWER-A distributed digital ledger that facilitates secure transactions without the need
for a third party
Claims representative - ANSWER-A person responsible for investigating, evaluating, and settling claims
Classification tree - ANSWER-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 - ANSWER-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 - ANSWER-A representation of data attributes in a classification tree
Comparative negligence - ANSWER-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 - ANSWER-A payment awarded by a court to reimburse a victim for actual harm
Complaint - ANSWER-The allegations made by a plaintiff in a lawsuit
Complex claim - ANSWER-A claim that contains one or more characteristics that cause it to cost more
than the average claim
Concealment - ANSWER-An intentional failure to disclose a material fact
Contributory Negligence - ANSWER-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) - ANSWER-An accepted standard for the
steps in any data mining process used to provide business solutions
Data mining - ANSWER-The analysis of large amounts of data to find new relationships and patterns that
will assist in developing business solutions
Data science - ANSWER-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 - ANSWER-A reduction in the value of property that results directly and often immediately
from damage to that property
Discovery - ANSWER-A pretrial exchange of all relevant information between the plaintiff and defendant
, 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
Answered| GRADED A+
Accuracy - ANSWER-In model performance evaluation, a model's correct predictions divided by its total
predictions
Actuary - ANSWER-A person who uses mathematical methods to analyze insurance data for various
purposes, such as to develop insurance rates or set claim reserves
Algorithm - ANSWER-An operational sequence used to solve mathematical problems and to create
computer programs
Allegation - ANSWER-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 - ANSWER-A case reserving method that establishes a predetermined dollar
amount of reserve for each claim as it is reported
Big data - ANSWER-Sets of data that are too large to be gathered and analyzed by traditional methods
Blockchain - ANSWER-A distributed digital ledger that facilitates secure transactions without the need
for a third party
Claims representative - ANSWER-A person responsible for investigating, evaluating, and settling claims
Classification tree - ANSWER-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 - ANSWER-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 - ANSWER-A representation of data attributes in a classification tree
Comparative negligence - ANSWER-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 - ANSWER-A payment awarded by a court to reimburse a victim for actual harm
Complaint - ANSWER-The allegations made by a plaintiff in a lawsuit
Complex claim - ANSWER-A claim that contains one or more characteristics that cause it to cost more
than the average claim
Concealment - ANSWER-An intentional failure to disclose a material fact
Contributory Negligence - ANSWER-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) - ANSWER-An accepted standard for the
steps in any data mining process used to provide business solutions
Data mining - ANSWER-The analysis of large amounts of data to find new relationships and patterns that
will assist in developing business solutions
Data science - ANSWER-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 - ANSWER-A reduction in the value of property that results directly and often immediately
from damage to that property
Discovery - ANSWER-A pretrial exchange of all relevant information between the plaintiff and defendant
, 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
