AIC 304 STUDY FINAL PAPER 2026 TESTED
QUESTIONS WITH FULL SOLUTION GRADED
A+
◉ 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
QUESTIONS WITH FULL SOLUTION GRADED
A+
◉ 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
