ARM™ 402 – My Answers to The Most Common Questions
The ARM™ 402 is a difficult exam. This exam focuses on the topics of risk financing, insurance, reinsurance, and financial risk.
In this blog, I’m going to answer some of the most common questions that we receive about the ARM™ 402 exam. These questions come directly from our ARM™ 402 students.
- What is the ARM™ 402 exam format?
- What is the passing grade for the ARM™ 402?
- What is the cost of the ARM™ 402 exam?
- What is the most difficult aspect of the ARM™ 402?
- What study material do you recommend for the ARM™ 402?
What is the ARM™ 402 exam format?
The ARM™ 402 exam consists of 50 multiple-choice questions in the virtual exam.
The virtual ARM™ exams will be 65-minutes long. Meaning, to answer every question before the time runs out, you should plan on spending about 1 minute and 18 seconds to answer each question (50 questions in 65 minutes).
All questions on the virtual exam will be application-based scenario questions. These are tricky questions that require you to apply your knowledge to a real-life scenario to choose the appropriate answer (you will not be repeating a definition or concept). That means, there is really no way to cheat on your exam, so don’t even try.
You can download one of our free practice exams to see what these questions look like.
What is the passing grade for the ARM™ 402?
The passing grade for the ARM™ 402 exam is 70%. This means you must answer 70% of the questions correctly to receive a passing grade on the ARM™ 402.
Since the ARM™ 402 exam is 50 questions long, this means you must answer 35 questions correctly (you can get 15 wrong) to earn a passing grade on the ARM™ 402.
What is the cost of the ARM™ 402 exam?
The cost of the ARM™ 402 exam varies depending on your choice of study material and exam registration. Each exam costs about $320 and study material ranges from $300 to $425 per exam. This means the total ARM™ 402 exam cost is around $600.
Our ARM™ 402 course is $300 for the full course or $150 for practice exams. Our full course comes with our money-back guarantee, pass your exam or your money back.
What is the most difficult aspect of the ARM™ 402?
The hardest part of the ARM™ 402 will be memorizing the math-intensive topics. There is a ton of information to digest and comprehend. Not only do you need to understand and memorize each formula, but you must comprehend the content to a high enough degree that you can apply the concepts and formulas in a real-life scenario.
You will see some questions that require you to calculate how much the insurance company will pay in a real-life scenario. For example, ABC Company is insured under a large deductible plan with $100,000 per person coverage, $250,000 per accident coverage, and a $1 Million aggregate limit. An employee of ABC Company causes an auto accident resulting in $150,000 of medical expenses incurred by the driver of the other car, $50,000 of medical expenses incurred by the passenger of the other car, and $250,000 in damage incurred by the employee of ABC Company that caused the accident. How much will ABC’s insurance company pay for this loss under the large deductible plan?
You will see some difficult questions like this that require you to understand all of the complex concepts of the ARM™ 402 and require you to apply your knowledge in a real-life scenario acting as a risk management professional.
For more information check out our blog detailing the ARM™ 402 exam difficulty.
What study material do you recommend for the ARM™ 402?
We recommend our ARM™ 402 Online Course.
We write our online courses to simplify the studying process, conveying the topics in simple terms and plain English. We make it easy to read, comprehend, and consume the abundance of complex content. This course will cover every topic and minor details that may appear on the ARM™ 402 exam. This course is updated according to the latest edition of the ARM™ 402 exam, this course is up to date with the current content of the exam.
Simply put, our ARM™ 402 Online Course is written in plain English, by industry experts that have earned their certification, designed to cut out the fluff and focus on the most important topics so you can pass your exam in less time, with less hassle (guaranteed). On average, students pass their ARM™ 402 exam using our course in just two weeks of studying one hour per day.
Free Practice Exam
Ready to get started studying? We’re here to help (for free). Download our free ARM™ 402 practice exams to get a feel for the type of questions you will see on the exam.
For more information about the ARM™ 402 exam, check out some of our other free resources:
- ARM™ 402 Online Course
- ARM™ 402 Free Course
- ARM™ 402 exam difficulty
- ARM™ 402 exam questions
- ARM™ 402 important topics
- ARM™ 402 exam format
- ARM™ 402 flashcards
- ARM™ 402 passing grade
- ARM™ 402 Q&A
- ARM™ Designation Overview
- ARM™ Exam Pass Rates
Difficulty rank, importance rank, and the advice provided 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.
ARM™ exams are administered by the American Institute for Chartered Property Casualty Underwriters (“The Institutes”). AssociatePI does not administer the actual exams, we are an independent resource of free content, advice, and study material for professional insurance education. This blog is intended for informational purposes only, to inform prospective students of the benefit of the ARM™ designation.
CPCU®, ARM™ 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.
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