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!
Examination Changes
Exams for the CPCU 551 and CPCU 552 are being changed from short essay to objective format beginning with the January 15 – March 15, 2012, testing window.
These exams consist of 85 objective questions. Time allotted to complete these exams is 2 hours.
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.
CPCU 500 Course
CPCU 510 was replaced with CPCU 500–Foundations of Risk Management and Insurance. The Institutes developed the new CPCU 500 course to provide students with a more tightly focused starting point in the CPCU program.
Ethics Requirement Revision
The Institutes have separated the study of ethics and the CPCU Code of Professional Conduct from the old CPCU 510 course and integrated it into the new online Ethics and the CPCU Code of Professional Conduct (Ethics 312). We believe the study of ethics is essential to the professional practice of risk management and insurance, and we made this revision to help students more effectively learn ethics and achieve a greater understanding of the science and art behind ethical decision-making in the context of the insurance business.
Individuals may satisfy the CPCU Ethics requirement as follows:
Pass the essay exam for CPCU 510–Foundations of Risk Management, Insurance, and Professionalism by March 15, 2011, OR
Pass the 50-question exam in Ethics and the CPCU Code of Professional Conduct. We recommend taking Ethics 312 and passing the exam early in your CPCU Experience, as this provides a valuable ethical framework for the rest of your CPCU studies. You have a 90-day access to the material when you register.
There is no charge to complete Ethics and the CPCU Code of Professional Conduct. If you wish to receive CE credit for it, there is a $5 administrative fee. The Institutes have filed Ethics and the CPCU Code of Professional Conduct for CE credit. View current filing status.
The CPCU 555 Exam will be objective
Exams for CPCU 555–Personal Risk Management and Property-Casualty Insurance will be delivered in an objective (multiple-choice) question format beginning with the January 15 – March 15, 2011 testing window.
CPCU Course Content Updates
As with all of our technical content, The Institutes revise courses in the CPCU program so they remain practical and relevant.
In February 2011 we phased in revisions to CPCU 552. An online self-study CPCU 552 course is also available.
In 2010 we phased in revisions to CPCU 520, 530, 540, 551, 553, 555, and 557. These revisions include the addition of case studies and even more application-oriented content. Online self-study courses for CPCU 500, 520, 530, 540, 551, 553, 555, and 557 were also made available.
For a schedule of study material availability and exam options, please visit the CPCU Revisions Web page.
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 objective questions. Time allotted to complete these exams is 2 hours.
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!
The Institutes’ goal is to make the CPCU designation program more relevant to and more practical for risk management and insurance professionals by making the CPCU content and assessments more application-based. The knowledge gained through such CPCU study will help drive the measurable results that our industry demands.
The Institutes have recently made a number of changes to the CPCU program. Can you explain why?
With the industry’s help, we have made the CPCU designation even more relevant to today’s risk management and property-casualty insurance professional. By adding an elective component to the program requirements and by revising course content, CPCU program participants benefit from:
• Even more application-based course content. CPCU courses don’t just cover risk management and insurance principles. CPCU courses enable individuals to apply these principles to their everyday professional responsibilities, increasing the relevancy of the program to today’s business environment.
• A broader understanding of the industry as a whole. Designed to provide a broad overview of the industry, CPCU course content gives individuals the technical knowledge and skills needed to succeed in their current career path, while also preparing them to achieve their future goals.
• Tailored content. By tailoring program content to cover specific functional areas, and by allowing program participants to select from an extensive list of electives, CPCU courses can be sequenced based on an individual’s previous education and experience in a way that best positions him or her to succeed.
• Potentially completing the program in as little as two to three years. With numerous and flexible testing opportunities and concise, focused content, an individual can complete the CPCU program in as few as two to three years, depending on the amount of time he or she applies to preparing for course exams.
With these new program changes, the CPCU designation program will continue to provide program participants with a passport to an exciting, successful future in the risk management and insurance industry.
I am studying one of the four current courses and want to continue with my study plans. How long do I have to pass the exam based on the current study materials?
The Institutes are offering people the flexibility to take either the current exam (based on existing study materials) or the new exam (based on the revised study materials), according to the following schedule:
Course
Testing Window
Exam Offered
CPCU 520
October 15 - December 15, 2010 January 15 - March 15, 2011
Current and New Objective Exam
CPCU 530
October 15 - December 15, 2010 January 15 - March 15, 2011
Current and New Objective Exam
CPCU 540
October 15 - December 15, 2010 January 15 - March 15, 2011
Current Objective Exam Current and New Objective Exam
CPCU 555
October 15 - December 15, 2010 January 15 - March 15, 2011
Current Objective Exam Current and New Objective Exam
To register for any of the new objective exams above, please contact Customer Service at customerservice@TheInstitutes.org or (800)644-2101.
Can you explain the timing of these revisions?
The announcement of these revisions was timed to coincide with the release of our annual catalog for 2011. Due to the extent of the revisions, it was not possible to release revised study materials all at one time in August as has been our past practice. We revised our testing windows to allow individuals and organizations to continue to test on current and/or new study materials. Click here for information and to see the release schedule.
When will the revised study materials be available?
I am studying a course that is being revised and may want to switch to the new material. What do I do?
You can certainly switch. There are some logistics to consider:
If you have already registered for an exam in the October 15 – December 15, 2010, testing window, you may change your exam date within that window at no charge as long as it is not within three days of the appointment. Transfers to another testing window are subject to our regular transfer fees. Please note that currently offered exams for CPCU 500, 520, 530, 540, 551, 553, 555 and 557 will not be offered after March 15, 2011.
Can I return my current study materials for a credit so I can purchase the revised study materials?
Returns of study materials are subject to our normal return policies. Before returning any study materials, contact Customer Service at The Institutes [Phone: (800) 644-2101; Fax: (610) 640-9576] for approval and instructions. You are responsible for the shipment until it arrives at our warehouse. Please ship using a trackable method or insure the package. Credit will be given on returned materials only if received in clean, resalable condition within 60 days of our shipment date.
Will the revised CPCU 520, 530, 540, and 555 courses still be eligible for CE credit?
The Institutes will file all revised courses for CE credit with each state. Log on to www.TheInstitutes.org/CE for the latest listings.
Can I order now and have my complete package shipped all at once?
Orders placed for Institutes study materials will be fulfilled with any and all in-stock items and shipped immediately; back-ordered items will be shipped separately as soon as they are in stock at no additional cost.
The Institutes
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.
The Institutes
CPCU Exam Changes
What exams are changing to objective (multiple-choice) format?
CPCU 551 and CPCU 552.
When will the first objective (multiple-choice) format exams be administered?
•The January 15 - March 15, 2012 testing window.
•During the January 15 – March 15, 2012 testing window, both essay and multiple choice formats of the exam will be available.
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 551 and CPCU 552 objective exams will be 2 hours.
•The allotted time to complete the CPCU 551 and CPCU 552 essay exams (which will be given for the last time during the January 15 – March 15, 2012 testing window) will remain 3 hours.
•Please note that if you are taking an objective format of the CPCU 551 or CPCU 552 exam at a Prometric Testing Center during the January 15 – March 15, 2012 testing window, your appointment will show 3.5 hours although your exam will only be 2 hours.
What if I take a CPCU 551 or CPCU 552 essay exam and don´t pass?
•You are allowed to take a given exam a maximum of two times during any one testing window. That rule applies to all of our examinations, regardless of format.
•If you take the essay exam for CPCU 551 or CPCU 552 toward the latter part of the January 15 – March 15, 2012 testing window and receive a nonpassing score after the window is closed, you will only be able to retake the exam in the objective format in the April 15 – June 15, 2012 testing window. No essay exams will be offered for CPCU 551 or CPCU 552 after March 15, 2012.
Will there be sample exams available?
Yes. We will have SMART Online Practice exams available in October 2011. Students who purchase the course guides for exams given in 2012 will receive an access code for the practice exam in the new objective format.
Has the study material changed?
•No. The study material for the essay and the objective format of the examination is the same. CPCU 551 was last revised in 2010 and CPCU 552 was last revised in 2011.
•If you are not certain that you have the correct study materials, contact Customer Service ( customerservice@TheInstitutes.org or 800-644-2101).
How do I register for the multiple choice exam?
Register online; call customer service, or submit a paper registration.
How do I register for the essay exam in the January 15 – March 15, 2012 testing window?
Call Customer Service. You cannot register online or submit a paper registration form.
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.
The Institutes
CPCU Electives
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.
The Institutes
New Ethics and the CPCU Code of Professional Conduct
Why did The Institutes separate the study of ethics and the CPCU Code of Professional Conduct from CPCU 510?
The Institutes believe that the study of ethics is essential to the professional practice of risk management and insurance. By separating the ethics component from CPCU 510, students will be able to more effectively study ethics and achieve a greater understanding of the science and art behind ethical decision-making in the context of the insurance business.
Is there an exam for the Ethics and the CPCU Code of Professional Conduct?
Yes. Completing Ethics and the CPCU Code of Professional Conduct is a part of the CPCU Ethics Requirement and it has a 50-question online exam. Passing that exam is required to satisfy the Ethics Requirement.
Will a sample exam be available?
No. Ethics and the CPCU Code of Professional Conduct consists only of a 50-question online exam.
With these changes , how do I satisfy the Ethics Requirement?
Those pursuing the CPCU designation must do one of the following to satisfy the CPCU Ethics Requirement:
Pass the essay exam for CPCU 510—Foundations of Risk Management, Insurance, and Professionalism by March 15, 2011.
or
Pass the 50-question exam in Ethics and the CPCU Code of Professional Conduct. Passing the exam for CPCU 500 will still, however, be required for obtaining the CPCU designation. We recommend taking and passing the Ethics and the CPCU Code of Professional Development exam early in your CPCU Experience, as this provides a valuable ethical framework for the rest of your CPCU studies. You have a 90-day access to Ethics and the CPCU Code of Professional Conduct when you register.
How many CE credits are available in my state for passing the Ethics and the CPCU Code of Professional Conduct exam?
There were relatively minor changes made to certain wording in the Code.
Why were the wording changes made?
The Institutes’ goal was to increase the practicality and relevance of the Code by making it more globally applicable, as well as easier to read and apply.
How can I let my clients know that I conform to the CPCU Code of Professional Conduct?
You can print out a copy of the Code to display in your office, along with your certificate of completion. Also, explain to your clients that you are a CPCU and, as such, you are bound by a code of professional conduct; it is something you may be justifiably proud of.
What should I do if I witness a CPCU violate the Code?
Maintaining the ethical standards of the CPCU designation is the collective responsibility of all CPCU designees and candidates. Any complaint alleging a violation of the CPCU Code of Professional Conduct should be submitted in writing to:
Ethics Counsel
The Institutes
720 Providence Rd., Suite 100
Malvern, PA 19355
For complete information, see Disciplinary Rules, Procedures, and Penalties in the CPCU Code of Professional Conduct.
Does this change to the Ethics Requirement affect the matriculation process?
No. However, the matriculation process is now fully online and you must complete the online matriculation form to be eligible to earn the CPCU designation. The substance of the matriculation process remains unchanged (i.e. you still pay a $75 matriculation fee, you agree to be bound by the Code, and so forth). Upon registering for your first CPCU exam, you will receive a link to the online matriculation form.
What support do you have for making this change?
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 Institutes' board of trustees, as mandated by our by-laws.
The Institutes
New CPCU 500 Course
What is CPCU 500—Foundations of Risk Management and Insurance?
CPCU 500 replaces CPCU 510. The new course is a direct result of removing the ethics and CPCU Code of Professional Conduct content from the old CPCU 510 course. The new CPCU 500 course is designed to be a natural starting point for the CPCU Experience.
Why is studying the CPCU Code of Professional Conduct no longer a part of CPCU 510?
The Institutes believe that the study of ethics is essential to the professional practice of risk management and insurance. By separating the ethics component from CPCU 510, students will be able to more effectively study ethics and achieve a greater understanding of the science and art behind ethical decision-making in the context of the insurance business. The new CPCU 500 course is designed to be a natural starting point for the CPCU Experience. See Ethics and the CPCU Code of Professional Conduct for more information on the CPCU ethics requirement.www.TheInstitutes.org/CPCUethics
Will the CPCU 500 exam be objective (multiple-choice) format?
Yes.
When will the first objective exams be administered?
October 15 - December 15, 2010 testing window.
How much time will I have to take the exam?
The allotted time to complete the CPCU 500 exam will be 90 minutes.
How many questions will be on the exam?
60 questions.
Why are you changing the exam for this course?
We are changing the exam format of this course because we can effectively assess mastery of the material using the objective format while providing additional benefits from this format.
Is the new CPCU 500 course eligible for CE credit?
The Institutes are filing the new course for CE credit. Visit The Institutes’ Web site for updated listings of CE credit by course and by state.
What if I take a CPCU 510 exam and do not pass?
If you take a CPCU 510 essay exam in the October 15 – December 15, 2010 testing window and do not pass, you will be able to retake the exam in essay format in the January 15 – March 15, 2011 testing window. In order to retake the essay exam in the January 2011 window, you must register by calling Customer Service at 1-800-644-2101. If you are not certain that you have the correct study materials, contact Customer Service at customerservice@TheInstitutes.org or 800-644-2101.
Will there be sample exams available for CPCU 500?
Yes. We will have a sample exam available in December 2010. Students who purchase the CPCU 500 course guides will receive an access code for the practice exam in the new objective format.
What support do you have for making this change?
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 Institutes' board of trustees, as mandated by our by-laws.
