Artificial Intelligence Governance Professional AIGP · Free Practice Question Medium

Question 23

A health insurer uses AI to set premiums and notices that certain minority groups are routinely quoted higher prices. What governance step is most essential to comply with non-discrimination laws?
  • A Base premiums solely on historical claims data without further review
  • B Conduct regular audits for algorithmic bias and correct any discriminatory patterns
  • C Allow AI models to self-correct without human intervention
  • D Ignore minor disparities in premium pricing as statistical noise
Reveal correct answer

Correct answer: B

Explanation

Non-discrimination compliance requires active bias monitoring and remediation, especially in sensitive fields like insurance.

A. Historical data can encode bias; it must be evaluated for fairness.

B. Regular bias audits help identify and address systemic discrimination to ensure lawful compliance.

C. Human oversight is required for responsible governance and legal compliance.

D. Disparities may indicate bias that needs remediation.

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