ARM™ 402 Exam: Most Important Topics

The ARM™ 402 is a difficult exam. In this blog, we are breaking down the most important topics of the ARM™ 402 exam (so you know what to study).

We will detail exactly what you should focus on when studying to pass this exam. The information in this blog post comes directly from our ARM™ 402 Online Course.

ARM™ 402 Exam Topics

The ARM™ 402 exam is all about risk. This exam covers the following topics:

  • Treating Risk
  • Insurance
  • Risk Financing Alternatives
  • Intellectual Property Risks
  • Vehicle Risks
  • Legal Risks
  • Operational Risks
  • Financial Risks
  • Strategic Risks

ARM™ 402 Most Important Topics

In our opinion, there are three critically important topics that you need to know to pass the ARM™ 402 exam:

  • Managing risk – the most important part of the exam will be understanding how to manage each individual type of risk covered in chapters 4 through chapters 9 in the 402 course (intellectual property risks, vehicle risks, legal risks, operational risks, financial risks, and strategic risks). In each chapter, there will be a section regarding the risk control and risk financing measures that a risk manager can take to reduce risk. For example, in the intellectual property risk chapter, you should know the risk control measures that can be used to reduce copyright, patent, and trademark-related risk. In the vehicle risk chapter, you should know the risk management techniques that can be used to reduce automobile “fleet risk”. For chapters 4 through chapter 9, know what risk control and risk financing techniques can be used to reduce risk.
  • Insurance – understand the risk financing goals, the characteristics of an insurable loss exposure, and how to calculate claim payouts under each type of insurance plan (large deductible, umbrella, self-insurance, etc…)
  • Treating risks – know the risk treatment plan and how to treat risk (exploit, risk control, and risk financing).

We have found that these are important topics that may be on your exam in the form of a scenario-based question.

You can see an example of how these are worked into a scenario-based question in our ARM™ 402 Practice Exam Questions Blog.

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.

Download: Free Practice Exam (CPCU® | ARM™ | AINS™ | API™)

More Information

For more information about the ARM™ 402 exam, check out some of our other free resources:



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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