The insurer retains application and decision controls: Which fact identifies the party retaining

Cloud hosting does not determine governance ownership; the insurer controls application use and claims decisions.

The question

Preparing for AIGP? Take the free 5-min readiness quiz →

1. The provider controls infrastructure operations and retained logs.

   This describes the provider’s infrastructure role, not control over application use, review, or claims decisions.
2. The insurer should transfer claims decisions to the cloud provider.

   Nothing in the facts supports transferring consequential decisions; the insurer expressly retains control over claims decisions.
3. The insurer retains application and decision controls. ✓

   The insurer controls prompts, permissions, review, and claims decisions, so it retains governance control over how the system is used and how outputs affect claims.
4. The insurer should assess provider dependencies separately from local controls.

   That is an appropriate governance activity, but it does not identify which party controls the application and decisions in this scenario.

How to remember it

Cloud hosting does not determine governance ownership; the insurer controls application use and claims decisions.

More Understanding How to Govern AI Deployment and Use questions

• The vendor's broad reuse of customer data for training: Given the deployer's own regulatory and safety →
• Evaluate an edge-capable deployment: Which deployment distinction best fits these constraints, while →
• Keep licensing rights separate from operational deployment: Which distinction governs the deployment? →
• All 424 Understanding How to Govern AI Deployment and Use questions →