API™ 28 Exam Questions

The API™ 28 exam is a 90-minute exam consisting of 55 multiple choice questions broken up into two sections, part A and part B.

  • Part A: Concept questions – The first section of the exam will be approximately 44 concept questions. These questions will test your understanding of definition or topic. The multiple-choice answers will generally provide 2 or 3 partially correct answers and one “best” answer.
  • Part B: Case questions – The second section of the exam will be approximately 11 case questions. These questions will require you to apply your knowledge to a specific scenario or event. You will be given a real life scenario; your job will be to select the best recommendation to solve the given scenario.

In this resource

In this blog we will breakdown two example questions, one from part A and one from part B. These questions are taken directly from our API™ 28 online course, the questions are designed to mimic the format and feel of the actual exam.

API™ 28 Sample Exam Questions – Part A

All of the following are customer needs that should be considered when selecting a distribution system and channel, except?

  1. The college age target market tends to shop frequently based on price
  2. ABC is considering implementing a new online quoting system which can complete an auto quote in 60 seconds
  3. The cost to implement a new quoting system will be a $500,000 upfront cost
  4. Customer’s in Seattle prefer using independent agents


Answer: C – The cost to implement a new quoting system will be a $500,000 upfront cost

The concept questions on this exam will not ask for you to define anything, as is common in a college exam, but it will ask you a question in regard to that definition or concept by applying the definition to a real-life scenario. This means you must fully understand the definition and fully understand how this definition is applied, meaning you must know “what are the distribution systems and channels”, “what customer needs are consider when implementing a new system and channel” and “which of the available multiple-choice answers best describes a customer consideration”

The answer in this case is C because the customer needs that should be considered are price, product and response time. Scenarios A, B, and D all relate to these customer considerations whereas answer C is a financial resource consideration.

How to approach part A exam questions

The best way to approach this type of questions is to first define what the question is asking and second, eliminate the multiple-choice answers that do not meet the question criteria.

In this case, you know that the three customer needs are price, product and response time. From here you can determine that answer A relates to price, answer B relates to response time and answer D relates to product. Answer C relates to the cost incurred by the insurer for implementing a new distribution system or channel. This is not a customer consideration, meaning this is your answer

For more concept questions, download our free API™ 28 practice exam.

API™ 28 Sample Exam Questions – Part B

Jack has been a customer of ABC insurer for the past 15 years. Jack’s home is insured with an unendorsed HO-3 policy providing $300,000 dwelling coverage, $150,000 personal property coverage and $500,000 liability coverage. In addition to his HO-3 policy, Jack has also purchased a personal umbrella policy which provides coverage of $2,000,000.

Upon returning home from vacation Jack notices two teenage boys rummaging through his trash outside of his home. Out of suspicion that the two boys are looking for confidential information, Jack grabs one of the boys and forces him to stay in his guest bedroom until the police arrive. The police find that the boys have done nothing wrong and the boy, who was held by Jack, sues for false arrest. The court awards the boy $1,500,000. How much of this will be paid by Jack’s umbrella policy?

  1. $1,000,000
  2. $1,500,000
  3. No coverage
  4. $1,200,000


Answer: B $1,500,000

A case question will give you a scenario like the one seen above; you will be required to select the correct answer based on the given scenario. As we mentioned in our API™ 28 exam format blog, scenario questions require you to fully understand what is being asked in a given scenario and fully understand how to apply the information you have learned from studying.

In this example you are given a lot of information, some of which is useful to the scenario and some of which is only there to confuse you. In this case you must know “does an HO-3 provide coverage for false arrest”, “what is a personal umbrella policy and does it cover false arrest” “what amount of coverage is provided for false arrest under the HO-3 and personal umbrella”, and “how is personal umbrella coverage applied in this scenario”.

In this case the answer is B because false arrest is not covered under an HO-3 liability policy. Because HO-3 does not cover this liability, Jack’s personal umbrella policy will provide drop down coverage and cover the entire claim.

How to approach part B exam questions

These questions are tricky and will require a LOT of critical thinking and question analysis. Case questions will attempt to overload you with information; you must be able to determine what is relevant and necessary to come to the correct answer.

The best way to approach these API™ 28 exam questions is to start by narrowing down the important information required to solve the scenario and second, determine which information is applicable to your multiple-choice answers.

In this case, you know that the HO-3 policy does not provide any coverage for false arrest. Because of this, you can disregard any coverage information about the HO-3 policy. Second, you need to know how coverage is applied from the personal umbrella coverage. You know that since this is a liability claim and no HO-3 coverage is available, the umbrella policy will drop down and provide full coverage. Third, you know the claim amount is $1,500,000. This is within the personal umbrella policy limits of $2,000,000, meaning that the entire claim will be covered by the personal umbrella policy bringing you to your answer of $1,500,000

For more case questions, download our free API™ 28 practice exam.

Free Practice Exam

Ready to get started studying? We’re here to help (for free). Download our free API™ 28 practice exams to get a feel for the type of questions you will see on the exam.


More Information

For more information about the API™ 28 exam, checkout some of our other free resources:


Remember, every API™ exam is different. No single exam is the same. Be sure to study ALL topics (not just our recommendation). This resource is intended to provide you with a general idea of where your focus should be. Make sure to thoroughly study every topic of this exam.

The exam questions and approaches in this resource are solely the opinion of AssociatePI. This resource is intended to provide you with a general idea of where your focus should be. Each exam administered by The Institutes is different. AssociatePI is not affiliated with The Institutes or involved in the exam writing process. Please be sure to thoroughly study every chapter and every topic of this course.

CPCU® and API are trademarks of the American Institute for Chartered Property Casualty Underwriters (“The Institutes”). AssociatePI LLC is not affiliated with, associated with, endorsed by or otherwise supported or recognized by The Institutes in any way. AssociatePI LLC is not authorized by The Institutes to offer courses, practice examinations, or any other resources related to the Institutes’ designations or other programs.

For further information regarding the content covered in this resource, please email contact@associatepi.com.


Download your free CPCU®, ARM™, or API™ practice exam.