The Institutes Announce Changes to the Chartered Property Casualty Underwriter (CPCU®) Program
The Institutes, responding to the needs of the property-casualty industry, are pleased to announce the following changes to the CPCU® program. Working in close cooperation with industry professionals, designees, training experts, and the CPCU Society, we have modified the CPCU program to ensure that it continues to meet the industry's needs in an ever-changing and competitive marketplace.
New!
CPCU Electives
Effective immediately, the CPCU program will include an elective component as a part of its Education requirement. Individuals pursuing the CPCU designation will select one elective course from among ten options in seven functional areas. Courses in the 8-part CPCU designation program now include four foundation courses, one elective course, and three concentration courses (personal or commercial). The elective choices are as follows:
AAI 83—Agency Operations and Sales Management
AIC 34—Workers Compensation and Managing Bodily Injury Claims
AIC 35—Property Loss Adjusting
AIC 36—Liability Claim Practices
ARe 144—Reinsurance Principles and Practices
ARM 56—Risk Financing
AU 65—Commercial Underwriting: Principles and Property
AU 66—Commercial Underwriting: Liability and Advanced Techniques
CPCU 560—Financial Services Institutions
ERM 57—Enterprise-Wide Risk Management: Developing and Implementing
There are numerous benefits. Electives:
Increase the relevancy of CPCU study for both individuals and organizations
Allows the individual to increase his or her knowledge in a particular area of interest
Provide the opportunity to earn cross-credits with other Institutes programs
Other Recent Changes
Experience Requirement
The CPCU experience requirement has decreased from 3 years to 2 years. The new 2-year experience requirement applies to all CPCU students and candidates who qualify for the class of 2010 and beyond, regardless of when the individual started in the program.
There are a number of reasons for this change:
The 3-year requirement dates from 1942, when fewer insurance professionals had a college degree and/or technical insurance training. Today, more people than ever are entering the industry with a college degree and/or have received technical insurance training early in their careers.
CPCU textbooks are being used by more college and university risk management and insurance programs than ever before. The shorter experience requirement will encourage students and recent college graduates to complete their CPCU studies and earn the designation.
Research shows that those who start CPCU earlier in their careers are more likely to successfully complete the program.
We hope to encourage younger insurance professionals to join the ranks of CPCUs, building a more knowledgeable industry workforce.
Examination Changes
Exams for the following courses changed from short essay to objective format (like CPCU 553 and CPCU 557 exams) beginning with the January 15 – March 15, 2010, testing window:
CPCU 520–Insurance Operations, Regulation, and Statutory Accounting
CPCU 530–The Legal Environment of Insurance
CPCU 540–Finance for Risk Management and Insurance Professionals
These exams consist of 85 to 100 questions. Time allotted to complete these exams will be 3 hours, just like other CPCU exams.
There are numerous student benefits to the objective exam format:
Wider Content Coverage. Having more questions (85 to 100 rather than 30 to 35) provides greater opportunity to demonstrate knowledge of the material.
Better Feedback. The Institutes can provide consistent and timely exam performance feedback to help non-passers better prepare to retake an exam.
Higher Quality Questions. The Institutes are able to pre-test questions, which helps to ensure that the questions appearing on your exam are clear and accurate.
The Institutes have thoroughly vetted these changes with CPCU designees and students, industry experts, training professionals, CPCU Society leadership, Institute committee members, insurance executives, and others. We carefully studied these changes to ensure that the CPCU designation program meets the needs of an ever-changing industry while remaining a rigorous and respected professional credential.
We have assembled a list of FAQs on both of these changes, the links are available in the gray side box located on the left side of this page. If you still have questions, please contact Customer Service at customerservice@TheInstitutes.org.
Thank you for your continuing support of the Institutes, the CPCU designation, and insurance professional development!
CPCU Experience Requirement Change
When does this change take effect?
Immediately. The new 2-year experience requirement applies to students who qualify for the class of 2010 and beyond.
Does it matter when I started the CPCU program or when I matriculated?
No. If you otherwise qualify for the CPCU class of 2010 or beyond, the 2-year experience requirement applies to you.
Do I have to do anything special to prove my experience?
You need only complete the Ethics and Experience Information Form, as before.
Why shorten the experience requirement?
There are a number of reasons:
•The 3-year requirement dates from 1942, when fewer insurance professionals had a college degree and/or technical insurance training. Today, more people than ever are entering the industry with a college degree and/or have received technical insurance training early in their careers.
•CPCU textbooks are being used by more college and university risk management and insurance programs than ever before. The shorter experience requirement will encourage students and recent college graduates to complete their CPCU studies and earn the designation.
•Research shows that those who start CPCU earlier in their careers are more likely to successfully complete the program.
•We hope to encourage younger insurance professionals to join the ranks of CPCUs, building a more knowledgeable industry workforce.
Have you made any changes to what constitutes acceptable employment for the experience requirement?
Yes. We have broadened the definition of support function. See highlighted changes below:
A. Insurance sales and related account services.
B. Insurance activities and services such as, but not limited to, claim handling, inspections, loss control, premium auditing, rate making, rating, reinsurance, and underwriting.
C. Support functions such as, but not limited to, accounting and bookkeeping, clerical, education and training, information technology, investment services, legal services, and personnel administration, if performed for a firm or department primarily engaged in insurance or if performed by a non-insurance firm in support of an insurance firm or firms.
D. Job roles such as attorney, public accountant, college teacher, consultant, risk manager, or employee of a regulatory authority, salvage company, trade association, trade press, or similar organization working with or as part of the insurance industry.
Aren´t you just making it easier to earn the CPCU designation by changing the experience requirement?
•No. We are making the program more accessible because the industry we serve today is very different than the industry was when the designation was founded in 1942. The 3-year requirement dates from 1942, when few insurance professionals had a college degree and/or technical insurance training. Today, more people than ever are entering the industry with a college degree and/or have received technical insurance training early in their careers.
•Other professions are also reflecting societal changes and changing their experience requirement. For example, only 2 years´ of experience is required for the CPA credential.
What support do you have for making these changes?
Since 2003, the Institutes have been receiving feedback from advisory committee members; surveys of new designees, students, line managers, and trainers and educators; and focus groups. In addition, a survey of students and completers was conducted as part of a special CPCU Experience Team chartered by the Institutes in 2006.
In April 2008, we convened a special focus group of relatively recent CPCU program graduates to evaluate and rank program concerns that had been uncovered in the market research. In November 2008, we conducted a focus group on personal lines with a group of high level personal lines executives. In March 2009, we convened a re-constituted and enlarged CPCU Advisory Committee (30 members) to discuss specific proposals for changes to the CPCU program.
Additionally, representatives of the CPCU Society general membership participated in the 2008 focus group and served on the 2009 CPCU Advisory Committee (including two Society Directors), while CPCU Society staff participated in our internal working groups.
The changes were approved by the American Institute for CPCU´s board of trustees, as mandated by our by-laws.
Are any other CPCU changes planned?
The CPCU program is a dynamic one. We are, and always have been, open to making any changes that will strengthen the CPCU designation. The balance of the CPCU program, however, will remain unchanged at this time.
AICPCU
CPCU Exam Change
What exams are changing to objective (multiple-choice) format?
CPCU 520, 530, and 540.
When will the first objective (multiple-choice) format exams be administered?
The January 15 – March 15, 2010 testing window.
How many questions will be on these exams?
85 to 100.
How much time will I have to take the exams?
The allotted time to complete the CPCU 520, 530, and 540 exams will remain 3 hours.
What if I take a CPCU 520, 530, or 540 essay exam and don´t pass?
If you take a CPCU 520, 530, or 540 essay exam in the October 15 – December 15, 2009 testing window and do not pass, you will be allowed ONE retake exam in essay format in the January 15 – March 15, 2010 testing window. In order to retake the essay exam in the January 2010 window, you must register by calling Customer Service at 1-800-644-2101. You will also have the option of retaking the exam in objective format. To help you prepare for the objective exam, you can purchase access to the new objective format practice exam without having to purchase a new course guide. Non-passers from any other 2009 testing window must retake the exam in the new objective format. If you are not certain that you have the correct study materials, contact Customer Service (customerservice@cpcuiia.org or 800-644-2101).
Why are you changing the exams for these courses?
We are changing the exam format of these core courses because we can effectively assess mastery of the material using the objective format while providing additional benefits from this format.
What are the benefits of objective (multiple-choice) exams?
There are many benefits:
• More questions (85 to 100 rather than 30 to 35) provides greater opportunity to demonstrate knowledge of the material.
• Objective grading greatly reduces the waiting period for grades, allowing students to progress more efficiently through the program. (NOTE: Instant grading will not be available in the January 15 – March 15 2010 testing window. Whenever a completely new exam is administered for the first time, the Institutes must validate the exam questions. This is done immediately at the close of the testing window and it ensures exam fairness.)
• The Institutes can provide consistent and timely exam performance feedback to help non-passers better prepare to retake an exam.
• The Institutes are able to pre-test questions, which helps to ensure that the questions appearing on your exam are clear and accurate.
If you want to test on more material, why don´t you just give longer essay exams?
Increasing the number of essay questions would mean lengthening the time needed to take an exam. Doing so would negatively affect students:
• Exam Fatigue. Students must already commit substantial time to prepare for and take CPCU exams. Lengthening the exams would place an unfair burden on the student, which could adversely affect performance on the exam.
• Grading Delays. Essay exams are graded by hand. Increasing the number of questions would result in increased time needed for grading. The slow-down in grading would, in turn, limit the student´s ability to retake an exam quickly in the event of a non-pass grade.
• Cost. Longer exams would increase the cost of an exam.
Does this change how I study for the exam?
Yes and no. You will still prepare for the exam by studying the Educational Objectives for each assignment; all questions on Institute exams are based on the Educational Objectives. We strongly recommend that you use the new objective format SMART practice exam to help you prepare. If you already have a current course guide, you can purchase access to the SMART exam without having to buy a new course guide. To purchase access to the SMART exam, contact Customer Service at customerservice@cpcuiia.org or (800) 644-2101. If you have never taken an Institute objective exam, you can download our free exam preparation guide full of helpful study tips from www.aicpcu.org/forms.
Will there be sample exams available?
Yes. We will have SMART Online Practice exams available in October 2009. Students who purchase the course guides for exams given in 2010 will receive an access code for the practice exam in the new objective format.
I have heard that objective (multiple-choice) exams are easier. Is that true?
Contrary to popular belief, objective exams are not easier than essay exams. Where students may receive partial credit on an essay question, objective questions have a single correct answer. Starting in 2000, the Institutes transitioned non-CPCU exams from essay to objective and the pass ratios (the percentage of students who pass a given exam), remained relatively constant. CPCU exams will remain as rigorous as ever.
How do you test on calculations in an objective (multiple-choice) exam?
Knowledge of calculations can be tested on objective exams as well as on essay exams. The objective testing format allows us to test on multiple elements of complex calculations, which gives examinees a more accurate picture of how well they understand the calculation.
Will I still be able to use a calculator?
Yes. Examinees are still permitted to use any solar- or battery-powered calculator (including business/financial calculators) with the following exceptions:
• Calculators with alphabetic keys for typing words are not permitted.
• Calculators with paper tapes are not permitted.
Note: Calculators will not be provided by the testing center.
What support do you have for making these changes?
Since 2003, the Institutes have been receiving feedback from advisory committee members; surveys of new designees, students, line managers, and trainers and educators; and focus groups. In addition, a survey of students and completers was conducted as part of a special CPCU Experience Team chartered by the Institutes in 2006.
In April 2008, we convened a special focus group of relatively recent CPCU program graduates to evaluate and rank program concerns that had been uncovered in the market research. In November 2008, we conducted a focus group on personal lines with a group of high level personal lines executives. In March 2009, we convened a re-constituted and enlarged CPCU Advisory Committee (30 members) to discuss specific proposals for changes to the CPCU program.
Additionally, representatives of the CPCU Society general membership participated in the 2008 focus group and served on the 2009 CPCU Advisory Committee (including two Society Directors), while CPCU Society staff participated in our internal working groups.
The changes were approved by the American Institute for CPCU´s board of trustees, as mandated by our by-laws.
Are you planning to change other CPCU exams to objective (multiple-choice) format? Are you planning other CPCU changes?
The CPCU program is a dynamic one. We are, and always have been, open to making any changes that will strengthen the CPCU designation. The balance of the CPCU program, however, will remain unchanged at this time.
AICPCU
CPCU Electives FAQ
When will electives be available for the CPCU Program?
June 28, 2010.
What electives are available?
There are 10 courses from which to choose. The elective courses are:
AAI 83—Agency Operations and Sales Management
AIC 34—Workers Compensation and Managing Bodily Injury Claims
AIC 35—Property Loss Adjusting
AIC 36—Liability Claim Practices
ARe 144—Reinsurance Principles and Practices
ARM 56—Risk Financing
AU 65—Commercial Underwriting: Principles and Property
AU 66—Commercial Underwriting: Liability and Advanced Techniques
CPCU 560—Financial Services Institutions
ERM 57—Enterprise-Wide Risk Management: Developing and Implementing
How many electives do I have to take?
One.
Do I get credit for the elective if I have already taken it?
If you have credit for one of the listed electives, it will automatically count as credit towards the CPCU elective. You will receive credit for only one elective even if you took more than one of the listed electives.
I have taken a number of identified electives, how many do I get CPCU credit for?
One
Can I get credit for another Institutes course that is not in the list of electives?
No. The courses were selected based on a careful review of content and represent the functional areas that best complement the CPCU program.
I have passed an Institutes designation program, but the course numbers have since changed? Could I potentially have credit?
No. You must have credit for one of the 10 specific courses on the list of electives.
What is the format of the exams?
ERM 57 and CPCU 560 are short-answer essay. All other electives are offered in an objective (multiple-choice) format.
How many questions will be on these exams?
ERM 57 and CPCU 560 exams have 30 to 35 questions.
Exams for all other electives have 85 to100 questions.
How much time will I have to take the exams?
The allotted time to complete the ERM 57 and CPCU 560 exams is 3 hours. Allotted time for all other elective exams is 2 hours.
Why are you introducing electives into the CPCU Program?
Since 2003, the Institutes have been receiving feedback from advisory committee members; surveys of new designees, students, line managers, and trainers and educators; and focus groups. In addition, a survey of students and completers was conducted as part of a special CPCU Experience Team chartered by the Institutes in 2006.
In April 2008, we convened a special focus group of relatively recent CPCU program graduates to evaluate and rank program concerns that had been uncovered in the market research. In November 2008, we conducted a focus group on personal lines with a group of high level personal lines executives. In March 2009, we convened a CPCU Advisory Committee (30 members) to discuss specific proposals for changes to the CPCU program.
Additionally, representatives of the CPCU Society general membership participated in the 2008 focus group and served on the 2009 CPCU Advisory Committee (including two Society Directors), while CPCU Society staff participated in our internal working groups.
The changes were approved by the American Institute for Chartered Property Casualty Underwriters’ board of trustees, as mandated by our by-laws.
What are the benefits of introducing electives into the CPCU Program?
There are numerous benefits. Electives:
Increase the relevancy of CPCU study for both individuals and organizations
Allows the individual to increase his or her knowledge in a particular area of interest
Provide the opportunity to earn cross-credits with other Institutes programs
Will there be sample exams available?
Yes, our courses have sample exams available. We also have SMART Online Practice exams available for most of the elective courses. Access codes for SMART Online Practice exams are provided with the purchase of the corresponding course guides.
Are you planning other changes to the CPCU Program?
The CPCU program is a dynamic one. We are, and always have been, open to making any changes that will strengthen the CPCU designation. The balance of the CPCU program, however, will remain unchanged at this time.
When will textbooks and other study materials be available for the elective courses?
All elective courses are currently offered Institutes courses and textbooks and other study materials are available for sale now. To purchase textbooks and other study materials, contact Customer Service at customerservice@cpcuiia.org or (800) 644-2101. If you have never taken an Institutes exam, you can download our free exam preparation guide full of helpful study tips from www.aicpcu.org/forms.
When will exams be available for the elective courses?
All elective exams are available during our four testing windows. To register for an exam, contact Customer Service at customerservice@TheInstitutes.org or (800) 644-2101. If you have never taken an Institutes exam, you can download our free exam preparation guide full of helpful study tips from www.TheInstitutes.org/forms.
Have you reduced the requirements of the CPCU Program?
The Education requirement for the CPCU designation program is still 8 parts and you will need to complete all 8 parts which now includes one elective course. Additionally, all CPCUs must satisfy the Ethics and Experience requirements; see www.TheInstitutes.org/cpcu for details.
