How to Pass Your API™ Designation

Did you know the Associate in Personal Insurance designation is only three exams? Two of which count towards your CPCU®! The API™ designation is the perfect complement to your CPCU®. In this resource we will provide a few tips on how you can pass the CPCU® 555, CPCU® 556 and API™ 28 to complete your API™ designation.

CPCU® 555

The CPCU® 555 exam is, in my opinion, the most difficult of the API™ exams. The CPCU® 555 exam focuses primarily on the auto and homeowner insurance policy. The questions on this exam are extremely specific relating to particular policy conditions and endorsements.

Our Advice
Memorize every little detail about each endorsement and coverage. In my experience, I found that the CPCU® 555 questions really try to trick you by giving you 2-3 partially correct answers, and one best answer. For instance, the question may ask you how Joey’s dirt bike will be covered if he gets in an accident. You’ll have to know the difference in dirt bike coverage under the homeowner policy, auto policy and endorsements.

CPCU® 555 Resources:
Here’s a few resources to help you pass your exam

Disclaimer

Remember, every API™ and CPCU® 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.

Download: Free CPCU® 555 Practice Exam

CPCU® 556

The CPCU® 556 exam, like the CPCU® 555, will try to trick you on nearly every single question. (If you’ve taken a CPCU® exam in the past, you know this is a common trend). This exam focuses on financial planning concepts including investing, annuities, life insurance, health insurance and post-secondary education. These topics may be foreign to a property casualty employee, the trick here is to start studying early. This helps to ensure that you memorize every detail of each financial planning vehicle.

Our Advice
Memorize the tax treatment of each financial planning vehicle. Taxes are a major topic of this exam so be sure to understand how each vehicle’s tax treatment differentiates from one another. For instance, pay attention to how death benefits are taxed, retirement age, how social security benefits change depending on the age of the retiree and pay attention to the difference between tax free, tax deferred and tax deductible investing.

CPCU® 556 Resources:
Here’s a few resources to help you pass your exam

Disclaimer

Remember, every API™ and CPCU® 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.

Download: Free CPCU® 556 Practice Exam

API™ 28

If you’ve passed the CPCU® 555 and CPCU® 556, or any other CPCU® exam, stop and take a deep breath….The API™ 28 exam is much easier than the CPCU® exams. The API™ 28 exam is only 55 questions and these questions are not as detail oriented as the typical CPCU® exam. The API™ 28 exam primarily focuses on underwriting personal insurance products including auto, homeowner, watercraft and miscellaneous vehicles. This exam is based on more of a broad overview of these topics (rather than minute specifics as is common in CPCU® exams), such as general considerations an underwriter must make when reviewing an auto insurance policy.

Our Advice
Understand the underwriting consideration of each line of business covered in the API™ 28 course. This exam will put you in the shoes of an underwriter; it will be your job to understand which policy characteristics increase risk. For instance, you must understand that a vehicle operated in a densely populated city represents a greater risk than a vehicle operated on a farm

API™ 28 Resources:
Here’s a few resources to help you pass your exam

Download: Free API™ 28 Practice Exam

Disclaimer

Remember, every API™ and CPCU® 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, difficulty, advice, 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.

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