ALU 202 EXAM LATEST
All the following are considerations when implementing a model
EXCEPT:
1. reason codes
2. integration and end-to end testing
3. model holdouts
4. propensity scoring - ANSWERS-Answer 4: propensity scoring -
pages 282-283.
Compare and contrast the favorable and unfavorable features associated
with underfitting and overfitting. - ANSWERS-Refer to page 276.
Describe what outliers are and how they can be handled. - ANSWERS-
Refer to page 278.
Commonly used model types include which of the following?
A. decision tree
B. data availability
C. linear regression
END OF
PAGE
1
, ALU 202 EXAM LATEST
Answer Options:
1. A only is correct.
2. A and C only are correct.
3. B and C only are correct.
4. A, B, and C are correct. - ANSWERS-Answer 2: A and C only are
correct - page 280.
Benefits of predictive modeling in underwriting include which of the
following?
A. better underwriter utilization
B. improved mortality and more competitive pricing
C. lower underwriting costs
Answer Options:
1. A only is correct.
2. A and B only are correct.
3. B and C only are correct.
END OF
PAGE
2
, ALU 202 EXAM LATEST
4. A, B, and C are correct. - ANSWERS-Answer 4: A, B, and C are all
correct - pages 271-273.
What are model implementation and monitoring considerations? -
ANSWERS-Refer to pages 281-282.
Describe examples of business areas that use modeling targets. -
ANSWERS-Refer to page 269.
Describe the important considerations for usage of predictive models
and their potential effects on the customer. - ANSWERS-Refer to page
284.
The provision describing the time limit within which an insurer has the
right to void a contract on the grounds of material misrepresentation is:
1. waiver
2. estoppel
3. interpleader
4. incontestability - ANSWERS-Answer 4: incontestability - page 292.
END OF
PAGE
3
, ALU 202 EXAM LATEST
A trust named as a beneficiary is a:
1. natural beneficiary
2. contingent beneficiary
3. non-natural beneficiary
4. escheat beneficiary - ANSWERS-Answer 3: a non-natural beneficiary
- page 297.
Misrepresentation is material if, had the insurer known the facts, it
would have done which of the following?
A. charged an increased premium for the added risk
B. reduced the amount of coverage applied for
C. declined to issue a policy
Answer Options:
1. A only is correct.
2. A and B only are correct.
3. B and C only are correct.
END OF
PAGE
4
All the following are considerations when implementing a model
EXCEPT:
1. reason codes
2. integration and end-to end testing
3. model holdouts
4. propensity scoring - ANSWERS-Answer 4: propensity scoring -
pages 282-283.
Compare and contrast the favorable and unfavorable features associated
with underfitting and overfitting. - ANSWERS-Refer to page 276.
Describe what outliers are and how they can be handled. - ANSWERS-
Refer to page 278.
Commonly used model types include which of the following?
A. decision tree
B. data availability
C. linear regression
END OF
PAGE
1
, ALU 202 EXAM LATEST
Answer Options:
1. A only is correct.
2. A and C only are correct.
3. B and C only are correct.
4. A, B, and C are correct. - ANSWERS-Answer 2: A and C only are
correct - page 280.
Benefits of predictive modeling in underwriting include which of the
following?
A. better underwriter utilization
B. improved mortality and more competitive pricing
C. lower underwriting costs
Answer Options:
1. A only is correct.
2. A and B only are correct.
3. B and C only are correct.
END OF
PAGE
2
, ALU 202 EXAM LATEST
4. A, B, and C are correct. - ANSWERS-Answer 4: A, B, and C are all
correct - pages 271-273.
What are model implementation and monitoring considerations? -
ANSWERS-Refer to pages 281-282.
Describe examples of business areas that use modeling targets. -
ANSWERS-Refer to page 269.
Describe the important considerations for usage of predictive models
and their potential effects on the customer. - ANSWERS-Refer to page
284.
The provision describing the time limit within which an insurer has the
right to void a contract on the grounds of material misrepresentation is:
1. waiver
2. estoppel
3. interpleader
4. incontestability - ANSWERS-Answer 4: incontestability - page 292.
END OF
PAGE
3
, ALU 202 EXAM LATEST
A trust named as a beneficiary is a:
1. natural beneficiary
2. contingent beneficiary
3. non-natural beneficiary
4. escheat beneficiary - ANSWERS-Answer 3: a non-natural beneficiary
- page 297.
Misrepresentation is material if, had the insurer known the facts, it
would have done which of the following?
A. charged an increased premium for the added risk
B. reduced the amount of coverage applied for
C. declined to issue a policy
Answer Options:
1. A only is correct.
2. A and B only are correct.
3. B and C only are correct.
END OF
PAGE
4
