CPCU® 500 Exam Format

The CPCU® 500 exam consists of 60 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 40 concept questions; these questions will test your understanding of a definition or topic.
  • Part B: Case questions – The second section of the exam will be approximately 20 case questions; these questions will require you to apply your knowledge to a specific scenario or event.

CPCU® Question Format

If you have not previously taken an institute’s administered exam, you will be in for quite the surprise. Although the CPCU® 500 content is not necessarily difficult, the questions on these CPCU® exams will be much different than what you may be used to on a typical exam that you took in high school or college. These questions require you to fully understand every aspect of the main topics and require you to actually apply the knowledge, rather than just repeating a definition.

I cannot stress this importance enough. You must fully understand a topic, DO NOT simply memorize definitions and think you will be able to pass (trust me, I’ve been there!)

CPCU® 500 Exam – Exam Topics

The major focus of the CPCU® 500 exam is risk and risk management techniques used by individuals and organizations. The main topics covered in this exam include Risk, risk management, risk control, risk financing, insurance, and big data.

A majority of the questions on this exam will be based on how individuals and organizations can use risk control and risk financing techniques, such as insurance, to mitigate risk. These questions will require you fully understand the job of a risk management professional and how various techniques can help to reduce the severity and frequency of loss.

Download: Free CPCU® 500 Practice Exam

CPCU® 500 Exam – Important Topics

Below we are outlining some important CPCU® 500 exam topics. We recommend you master these topics before attempting the CPCU® 500 exam. This is our opinion of the topics that are important on your exam.

  • Risk Control – you must know the risk control techniques, and understand the difference between effective versus efficient risk control.
  • Risk Financing – you must know the risk financing goals, advantages of retention, and advantages of transfer advantages.
  • Insurance – you must know the DICE method, understand the topics of deductibles, understand the topics of other insurance, and understand insurance to value
  • Risk management – you must know the elements of risk, the types of hazard (moral, morale, physical legal), the goals of risk management, probability distribution (discrete and continuous) and must understand standard deviation.

Disclaimer

Remember, every 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.

Our Advice

My biggest recommendation is to focus on risk control and risk financing.  These two chapters are very similar and combine to form the most important concepts of the CPCU® 500 exam. Make sure to FULLY memorize the risk control techniques and understand the different advantages of retention versus transfer. This exam will require you to recommend the best risk control technique or risk financing method (retention or risk transfer) for a given situation.

Free Practice Exam

Ready to get started studying? We’re here to help (for free). Download our free CPCU® 500 practice exams to get a feel for the type of questions you will see on the exam.

Download: Free CPCU® 500 Practice Exam

More Information

For more information about the CPCU® 500 exam, checkout some of our other free resources:

Disclaimer

Remember, every 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.

Difficulty rank and importance rank 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® 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 CPCU® designation.

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, please email contact@associatepi.com.

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