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An Artificial Neural Network with cross-connection is one of the most popular network structures. The structure contains: an input layer, at least one hidden layer and an output layer. Analysing and describing an ANN structure, one usually finds that the first parameter is the number of ANN’s layers. A hierarchical structure is a default and accepted way of describing the network. Using this assumption, the network structure can be described from a different point of view. A set of concepts and models can be used to describe the complexity of ANN’s structure in addition to using a two-level learning algorithm. Implementing the hierarchical structure to the learning algorithm, an ANN structure is divided into sub-networks. Every sub-network is responsible for finding the optimal value of its weight coefficients using a local target function to minimise the learning error. The second coordination level of the learning algorithm is responsible for coordinating the local solutions and finding the minimum of the global target function. In the article a special emphasis is placed on the coordinator’s role in the learning algorithm and its target function. In each iteration the coordinator has to send coordination parameters into the first level of sub-networks. Using the input X and the teaching ?? vectors, the local procedures are working and finding their weight coefficients. At the same step the feedback information is calculated and sent to the coordinator. The process is being repeated until the minimum of local target functions is achieved. As an example, a two-level learning algorithm is used to implement an ANN in the underwriting process for classifying the category of health in a life insurance company.

A two-level on-line learning algorithm of Artificial Neural Network with forward connections