The act of knowing incorrect claim payments and fraudulent activities falls under insurance type of data mining applications.
Data mining is known to be a tool that is often used by lots of insurance providers as it helps them to be able to know or predict the claims that are fraudulent so that one can be able to rightly target their resources and recoup a good amounts of money.
Conclusively, the act of Identifying and preventing incorrect claim payments and fraudulent activities falls under insurance type of data mining applications as it helps handles all issues regarding the above.
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