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Technology & Digital Applications Flashcards

7 cards from real Insurance practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. What is telematics in the context of auto insurance?

    Answer: A system that remotely monitors driving behavior to adjust premiums

    Telematics uses onboard devices or smartphone apps to track driving data like speed and braking, allowing insurers to offer usage-based pricing.

  2. Which regulation primarily governs how insurers must protect policyholders' personal data in the United States?

    Answer: The Gramm-Leach-Bliley Act (GLBA)

    The GLBA requires financial institutions, including insurers, to safeguard consumers' nonpublic personal information and provide privacy notices.

  3. An insurer uses an algorithm that automatically approves or denies life insurance applications. Which AI concern does this raise most directly?

    Answer: Algorithmic bias potentially discriminating against protected classes

    Automated underwriting algorithms can embed historical biases, leading to discriminatory outcomes for protected classes if not carefully audited.

  4. What does 'API integration' allow in modern insurance ecosystems?

    Answer: Different software systems to share data and functions in real time

    APIs (Application Programming Interfaces) enable insurers, agents, and third-party vendors to connect systems seamlessly for quotes, billing, and claims.

  5. A homeowner's insurer deploys drones after a hurricane. What is the primary advantage for claims handling?

    Answer: Faster, safer roof inspections without requiring an adjuster on the damaged property

    Drones allow rapid aerial imaging of storm-damaged roofs, speeding up the claims process while keeping adjusters safe.

  6. Which best describes 'InsurTech'?

    Answer: Startups and technology innovations designed to disrupt or improve the insurance industry

    InsurTech refers to companies and innovations using technology—AI, IoT, blockchain—to modernize insurance distribution, underwriting, and claims.

  7. A health insurer uses wearable device data to offer premium discounts. Which ethical concern is most relevant?

    Answer: Privacy invasion and potential penalization of individuals with chronic conditions

    Continuous biometric monitoring raises concerns about data misuse and unfair treatment of people whose health conditions are beyond their control.