AIC 300 CLAIMS IN AN EVOLVING WORLD
2026 CERTIFICATION EVALUATION EXAMS
COMPLETE QUESTIONS AND ANSWER
◉ 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
◉ Information gain.
Answer: A measure of the predictive power of one or more
attributes
◉ Insurable interest.
Answer: An interest in the subject of an insurance policy that is not
unduly remote and that would cause the interested party to suffer
financial loss if an insured event occurred
◉ Insurance fraud.
Answer: Any deliberate deception committed against an insurer or
an insurance producer for the purpose of unwarranted financial gain
◉ Internet of Things (IoT).
Answer: A network of objects that transmit data to each other and to
central hubs through the internet
◉ Leaf node.
, Answer: A terminal node of a classification tree that is used to
classify an instance based on its attributes
◉ Lift.
Answer: In model performance evaluation, the percentage of
positive predictions made by the model divided by the percentage of
positive predictions that would be made in the absence of the model
◉ Loss adjustment expense (LAE).
Answer: The expense that an insurer incurs to investigate, defend,
and settle claims according to the terms specified in the insurance
policy
◉ Loss ratio.
Answer: A ratio that measures losses and loss adjustment expenses
against earned premiums and that reflects the percentage of
premiums being consumed by losses
◉ Machine learning.
Answer: Artificial intelligence in which computers continually teach
themselves to make better decisions based on previous results and
new data
◉ Material fact.
2026 CERTIFICATION EVALUATION EXAMS
COMPLETE QUESTIONS AND ANSWER
◉ 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
◉ Information gain.
Answer: A measure of the predictive power of one or more
attributes
◉ Insurable interest.
Answer: An interest in the subject of an insurance policy that is not
unduly remote and that would cause the interested party to suffer
financial loss if an insured event occurred
◉ Insurance fraud.
Answer: Any deliberate deception committed against an insurer or
an insurance producer for the purpose of unwarranted financial gain
◉ Internet of Things (IoT).
Answer: A network of objects that transmit data to each other and to
central hubs through the internet
◉ Leaf node.
, Answer: A terminal node of a classification tree that is used to
classify an instance based on its attributes
◉ Lift.
Answer: In model performance evaluation, the percentage of
positive predictions made by the model divided by the percentage of
positive predictions that would be made in the absence of the model
◉ Loss adjustment expense (LAE).
Answer: The expense that an insurer incurs to investigate, defend,
and settle claims according to the terms specified in the insurance
policy
◉ Loss ratio.
Answer: A ratio that measures losses and loss adjustment expenses
against earned premiums and that reflects the percentage of
premiums being consumed by losses
◉ Machine learning.
Answer: Artificial intelligence in which computers continually teach
themselves to make better decisions based on previous results and
new data
◉ Material fact.
