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AIGP · Question #149

CASE STUDY Please use the following to answer the next question: A leading insurance provider that offers a range of coverage options to individuals has decided to utilize AI to streamline and improve

The correct answer is D. The AI model card.. An AI model card is the appropriate mechanism for providing transparent, structured information about the model's purpose, parameters, data use, evaluation results, and limitations. It gives customers meaningful insight into how the AI contributes to underwriting decisions withou

AI Governance Program

Question

CASE STUDY Please use the following to answer the next question:

A leading insurance provider that offers a range of coverage options to individuals has decided to utilize AI to streamline and improve its customer acquisition and underwriting process, including the accuracy and efficiency of pricing policies. The company has engaged a cloud provider to utilize and fine-tune its pre-trained, general purpose large language model (“LLM”). The company intends to use its historical customer data - including applications, policies and claims - and proprietary pricing and risk strategies to provide an initial qualification assessment of potential customers, which would then be routed to a human underwriter for final review. The company and the cloud provider have completed training and testing the LLM, performed a readiness assessment, and made the decision to deploy the LLM into production. They have designated an internal compliance team to monitor the model during the first month, specifically to evaluate the accuracy, fairness and reliability of its output. After the first month in production, the company realizes that the LLM declines a higher percentage of women’s applications. The best approach to enable a customer who wants information on the AI model’s parameters for underwriting purposes is to provide:

Options

  • AA detailed terms of service.
  • BThe adverse action notice.
  • CA detailed privacy policy.
  • DThe AI model card.

How the community answered

(41 responses)
  • A
    12% (5)
  • B
    5% (2)
  • C
    7% (3)
  • D
    76% (31)

Explanation

An AI model card is the appropriate mechanism for providing transparent, structured information about the model's purpose, parameters, data use, evaluation results, and limitations. It gives customers meaningful insight into how the AI contributes to underwriting decisions without exposing proprietary details.

Topics

#model card#AI transparency#insurance AI#documentation

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