Chapter 12

Question 1

4 Applications of Predictive Modeling in Underwriting

Answer 1

1. Application Triage
2. Propensity Scoring
3. Approve/decline decisions
4. mortality scoring

Question 2

Propensity Scoring

Answer 2

complex model built to estimate the likelihood of a proposed insured having a certain condition, based on more detailed information like labs

Question 3

Major considerations when implementing a model

Answer 3

1. integration and end to end testing
2. reason codes
3. monitoring
4. model old outs

Question 4

Model hold outs

Answer 4

Certain number of proposed insured’s using the new system are randomly selected for traditional requirements