Samples / SC P&C / Deep dive / Determination methodology
Deep dive — methodology

How the Category A / B / C determination is derived

Every $499 Snapshot lands on exactly one overall determination. Not a color code, not a health score — an A/B/C determination tied to attestation stance. Here is exactly how it is derived on the SC auto-claims-triage scenario.

The three categories

CategoryMeaningAttestation stance
A No high-severity drift events. No group-differential signal. Baseline vs recent distributions match within threshold. Sufficient for attestation. Signed evidence on file.
B Medium-severity drift or single-event high-severity without group-differential signal. Aggregate metrics stable. Conditional. Named remediation + re-audit within a defined window supports attestation.
C Multiple high-severity drift events + group-differential signal fired. Insufficient. Operator should not represent the AI as SC UCSPA-, SC UTPA-, or NAIC-Bulletin-defensible until remediation completes.

The evidence chain

  1. Sensor thresholds active during the audit:
    • Mean-shift threshold: 1.5 standard deviations from baseline
    • Variance-ratio threshold: 1.5x baseline
    • KL-divergence threshold: 0.2
    • Group adverse-impact differential threshold: 12% shift across county groups
  2. Event classification:
    • Any single-threshold cross → medium-severity event
    • KL-divergence > 1.0 OR group-differential signal → high-severity event
  3. Category assignment:
    • 0 high-severity + 0 group-differential → A
    • 1-2 high-severity, no group-differential signal → B
    • ≥ 3 high-severity or any group-differential signal fired → C

Why this sample lands on C

11 high-severity drift events on C3 (mostly KL-divergence 2.1 to 3.9) + C3 group-differential SIU-flag rate rise from ~5% to ~19%. Either condition alone is sufficient for C. Both are present. The determination is not marginal.

Snapshot ID: CAI-SC-PC-DEMO-{hash}. Model version: sc-claims-severity-v2.3.1. Audit period: 90 days. First drift event: Day 44.

Why the A/B/C structure matters

Continuous-scale scores (0-100 dashboard, red/yellow/green tri-lights, "health-score" percentages) push operators toward "just above the threshold" gaming behavior. A/B/C determinations force a single stance question:

Would you sign the officer attestation as-is today? A/B/C answers the question that SC DOI examiners, boards, reinsurers, and plaintiff's counsel actually ask — instead of the question a vendor's dashboard prefers.

How does this help me?

Knowing your category BEFORE the market-conduct exam letter, plaintiff's demand letter, SC AG inquiry, or reinsurance-renewal questionnaire lands is the whole value of the $499 discipline.

Read: The value of knowing your category first →

$499 Snapshot. 3 business days.

Get your carrier's Category A / B / C determination on your actual AI surface — before someone else's question forces the answer.

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