This paper describes a novel diagnostic method based on inverse models that could be applied to identification of transients and accidents in nuclear power plants. In particular, it is shown that such models could be successfully applied to identification of loss-of-coolant accidents (LOCAs). This is demonstrated for LOCA scenarios for a boiling water reactor. Two classes of inverse models are discussed: local models valid only in a selected neighborhood of an unknown element in the data set, representing a state of a considered object, and global models, in the form of partially unilateral models, valid over the whole learning data set. An interesting and useful property of local inverse models is that they can be considered as example-based models, i.e., models that are spanned on particular sets of pattern data. It is concluded that the optimal diagnostic method should combine the advantages of both models, i.e., the high quality of results obtained from a local inverse model and the information about the confidence interval for the expected output provided by a partially unilateral model.