AIC 300 Exam Questions With Complete Solutions
A doctor recommends that a patient receive physical therapy
three times per week for twelve weeks when three times per
week for eight weeks would suffice. Correct Answers This is a
padded claim, a type of soft fraud.
Aaron works for a multi-line insurer. He works with insurance
producers and applicants to evaluate new business submissions
and conduct renewal underwriting. Aaron is a
A. Personal lines underwriter.
B. Line underwriter.
C. Staff underwriter.
D. Public underwriter. Correct Answers B. Line underwriter.
This describes the duties of a line underwriter, rather than a staff
underwriter. There is not enough information to determine
which line of business is being written. A public underwriter
does not exist. Line underwriters evaluate new submissions and
perform renewal underwriting, usually by working directly with
insurance producers and applicants. Staff underwriters,
meanwhile, manage risk selection by working with line
underwriters and coordinating decisions about products, pricing
and guidelines.
Accuracy Correct Answers In model performance evaluation, a
model's correct predictions divided by its total predictions.
,Actuary Correct Answers A person who uses mathematical
methods to analyze insurance data for various purposes, such as
to develop insurance rates or set claim reserves.
Adam manages a claims department for an insurer. He measures
the department's performance by best practices, claims audits,
customer satisfaction data, and loss ratio. Which one of Adam's
measures refers to a system of identified internal practices that
claims representatives perform to produce superior
performance?
A. Customer satisfaction data
B. Best practices
C. Loss ratio
D. Claims audits Correct Answers B. Best practices
Best practices generally refers to a system of identified internal
practices that are shared with claims reps and produce superior
performance.
Algorithm Correct Answers An operational sequence used to
solve mathematical problems and to create computer programs.
Allegation Correct Answers A claim made in the complaint by
the plaintiff, specifying what the plaintiff expects to prove to
obtain a judgment against the defendant.
Although most policies are occurrence forms, covering claims
that occur during the policy period, some are claims-made
forms. Which one of the following types of loss is most likely to
involve a claims-made form?
,A. A homeowners claim due to storm damage.
B. An automotive collision claim.
C. A homeowners liability claim due to a slip and fall.
D. A medical malpractice claim. Correct Answers D. A
medical malpractice claim.
Alva works for an international, multi-line insurer. She helps her
company to manage risk selection by working with other
underwriters and coordinating decisions about products, pricing,
and guidelines. Alva is a
A. Staff underwriter.
B. Master underwriter.
C. Chief Underwriting Officer
D. Line underwriter. Correct Answers A. Staff underwriter
Staff underwriter. This describes the duties of a staff
underwriter. Line underwriter. This describes the duties of a line
underwriter, rather than a staff underwriter. There is not enough
information to determine which line of business is being written.
A public underwriter does not exist. Line underwriters evaluate
new submissions and perform renewal underwriting, usually by
working directly with insurance producers and applicants. Staff
underwriters, meanwhile, manage risk selection by working with
line underwriters and coordinating decisions about products,
pricing and guidelines.
Among the methods used to pay claims are the issuance of
checks and bank drafts. The main difference between the two is
, that Correct Answers A. With a bank draft, the bank must
verify that the insurer has authorized payment.
An insured borrows fine jewelry from her friends and family.
She has it appraised and covered by her homeowners policy. She
returns the jewelry to the owners and reports it stolen. She then
collects on the insurance. Correct Answers This is a false
claim, a type of hard fraud.
An insured buys multiple fire insurance policies on the same
house, then intentionally burns the house to the ground and
collects the policy limits on several policies. Correct Answers
This is an intentional loss, a type of hard fraud.
An insurer that finds it economically impractical to establish a
claims office in a given state is likely to use which one of the
following to perform the claims handling function?
A. Producers
B. Third-party administrators
C. Public adjusters
D. Independent adjusters Correct Answers D. Independent
adjusters
An insurer wants to predict which claims to target for fraud
investigation. It wishes to do this based on the known fraud
indicators: a claimant who threatens to hire an attorney
immediately after an accident and a claimant with a history of
similar claims. Which data mining technique would the analyst
be likely to use? Correct Answers The analyst would likely use
classification because the insurer is predicting the category into
A doctor recommends that a patient receive physical therapy
three times per week for twelve weeks when three times per
week for eight weeks would suffice. Correct Answers This is a
padded claim, a type of soft fraud.
Aaron works for a multi-line insurer. He works with insurance
producers and applicants to evaluate new business submissions
and conduct renewal underwriting. Aaron is a
A. Personal lines underwriter.
B. Line underwriter.
C. Staff underwriter.
D. Public underwriter. Correct Answers B. Line underwriter.
This describes the duties of a line underwriter, rather than a staff
underwriter. There is not enough information to determine
which line of business is being written. A public underwriter
does not exist. Line underwriters evaluate new submissions and
perform renewal underwriting, usually by working directly with
insurance producers and applicants. Staff underwriters,
meanwhile, manage risk selection by working with line
underwriters and coordinating decisions about products, pricing
and guidelines.
Accuracy Correct Answers In model performance evaluation, a
model's correct predictions divided by its total predictions.
,Actuary Correct Answers A person who uses mathematical
methods to analyze insurance data for various purposes, such as
to develop insurance rates or set claim reserves.
Adam manages a claims department for an insurer. He measures
the department's performance by best practices, claims audits,
customer satisfaction data, and loss ratio. Which one of Adam's
measures refers to a system of identified internal practices that
claims representatives perform to produce superior
performance?
A. Customer satisfaction data
B. Best practices
C. Loss ratio
D. Claims audits Correct Answers B. Best practices
Best practices generally refers to a system of identified internal
practices that are shared with claims reps and produce superior
performance.
Algorithm Correct Answers An operational sequence used to
solve mathematical problems and to create computer programs.
Allegation Correct Answers A claim made in the complaint by
the plaintiff, specifying what the plaintiff expects to prove to
obtain a judgment against the defendant.
Although most policies are occurrence forms, covering claims
that occur during the policy period, some are claims-made
forms. Which one of the following types of loss is most likely to
involve a claims-made form?
,A. A homeowners claim due to storm damage.
B. An automotive collision claim.
C. A homeowners liability claim due to a slip and fall.
D. A medical malpractice claim. Correct Answers D. A
medical malpractice claim.
Alva works for an international, multi-line insurer. She helps her
company to manage risk selection by working with other
underwriters and coordinating decisions about products, pricing,
and guidelines. Alva is a
A. Staff underwriter.
B. Master underwriter.
C. Chief Underwriting Officer
D. Line underwriter. Correct Answers A. Staff underwriter
Staff underwriter. This describes the duties of a staff
underwriter. Line underwriter. This describes the duties of a line
underwriter, rather than a staff underwriter. There is not enough
information to determine which line of business is being written.
A public underwriter does not exist. Line underwriters evaluate
new submissions and perform renewal underwriting, usually by
working directly with insurance producers and applicants. Staff
underwriters, meanwhile, manage risk selection by working with
line underwriters and coordinating decisions about products,
pricing and guidelines.
Among the methods used to pay claims are the issuance of
checks and bank drafts. The main difference between the two is
, that Correct Answers A. With a bank draft, the bank must
verify that the insurer has authorized payment.
An insured borrows fine jewelry from her friends and family.
She has it appraised and covered by her homeowners policy. She
returns the jewelry to the owners and reports it stolen. She then
collects on the insurance. Correct Answers This is a false
claim, a type of hard fraud.
An insured buys multiple fire insurance policies on the same
house, then intentionally burns the house to the ground and
collects the policy limits on several policies. Correct Answers
This is an intentional loss, a type of hard fraud.
An insurer that finds it economically impractical to establish a
claims office in a given state is likely to use which one of the
following to perform the claims handling function?
A. Producers
B. Third-party administrators
C. Public adjusters
D. Independent adjusters Correct Answers D. Independent
adjusters
An insurer wants to predict which claims to target for fraud
investigation. It wishes to do this based on the known fraud
indicators: a claimant who threatens to hire an attorney
immediately after an accident and a claimant with a history of
similar claims. Which data mining technique would the analyst
be likely to use? Correct Answers The analyst would likely use
classification because the insurer is predicting the category into
