Become a Chartered Property Casualty Underwriter

The CPCU Designation, its Benefits, and How to Get One

May 7, 2009 Crystal Lewis

Underwriters, risk managers and even insurance lawyers hold the most valuable credential in the insurance industry. Here's why and how they earned their CPCU designation.

More than 65,000 people have furthered their insurance careers and solidified their reputations as valuable contributors to the insurance profession by becoming Chartered Property Casualty Underwriters.

It is common for insurance professionals to become Chartered Property Casualty Underwriters, but most people are unaware that lawyers, marketing consultants, claims adjusters, and various other professionals who work closely with the insurance industry pursue the designation.

Chartered Property Casualty Underwriters are viewed as knowledgeable, dedicated, and capable. They are highly sought after by insurance companies, risk management firms, and government agencies. Many CPCUs use the insurance expertise they gain while studying for their designations to work as consultants in various capacities.

How to Earn the CPCU Designation

In order to earn the CPCU designation, one must pass eight of eleven available standardized self-study courses. Of the eight courses are five mandatory "foundation courses." Candidates will also choose three additional courses which will focus on either personal lines or commercial coverage.

The five foundation courses are:

  • CPCU 510 Foundations of Risk Management, Insurance, and Professionalism
  • CPCU 520 Insurance Operations, Regulation, and Statutory Accounting
  • CPCU 530 The Legal Environment of Insurance
  • CPCU 540 Finance for Risk Management and Insurance Professionals
  • CPCU 560 Financial Services Institutions

CPCU candidates interested in the commercial property track will also take:

  • CPCU 551 Commercial Property Risk Management and Insurance
  • CPCU 552 Commercial Liability Risk Management and Insurance
  • CPCU 553 Survey of Personal Risk Management, Insurance, and Financial Planning

The personal lines track is completed by taking:

  • CPCU 555 Personal Risk Management and Property-Liability Insurance
  • CPCU 556 Personal Financial Planning
  • CPCU 557 Survey of Commercial Risk Management and Insurance

Tips for Taking CPCU Exams

Studying for the CPCU exams can be stressful. The courses are typically presented in self-study formats, and the exams are administered in essay form. Most of the people who study for these exams are employed full-time. Many have families and other commitments. These variables have been known to make the road to the completion of the CPCU program difficult, and a large number of the people who start their CPCU coursework don't complete it.

Here are a few tips for busy professionals who would like to become Chartered Property Casualty Underwriters:

  • Set a CPCU-related career goal, and remember the goal when the going gets tough.
  • Set a moderate, but steady pace. A large number of the people who stop before completing their CPCU designations do so due to burn-out. To avoid this pitfall, it may be helpful to decide in the beginning that it's okay to move through the process slowly.
  • Design a study schedule and stick to it. Students with study schedules are more organized and have clear goals. Organization and goal-orientation are two of the key formulas to successful self-study.
  • Plan to study for 60 to 90 days per exam, and schedule the exam in advance. Concrete deadlines help busy candidates to stay focused.
  • Take two to three practice exams before testing. Candidates who do so will become more familiar with the types of questions asked and the format of the tests.

There are several resources available to aspiring Chartered Property Casualty Underwriters, with the most common being the American Institute for Chartered Property Casualty Underwriters (AICPCU). The AICPCU's website is home to the most comprehensive collection of information about the CPCU designation and can be used to find study materials, exam dates, and other general information about insurance designations.

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