CPCU® 550 Exam Questions

In this blog, we will break down two example CPCU® 550 exam questions. These questions are taken directly from our CPCU® 550 online course, the questions are designed to mimic the format and feel of the actual exam.

About the CPCU® 550 Exam Questions

The CPCU® 550 exam is a 65-minute virtual exam consisting of 50 multiple-choice questions. Exams are virtual, and non-proctored, meaning you take the exam alone online directly from your computer.

You can download one of our free practice exams to see what these questions look like.

Time constraint

Remember, the CPCU® 550 exam consists of 50 multiple-choice questions and you only have 65 minutes to complete the exam. That means, you only have about 1 minute and 18 seconds per exam question. That’s not a lot of time. You need to memorize all of the content of this exam to be able to quickly read, analyze, and correctly answer each scenario-based question.

CPCU® 550 Sample Exam Questions (First Sample Question)

Adam is using an economic report to gather data in regard to interest rates and exchange rates. He plans to use this data in his analysis of the best international market for introducing a new insurance product. This is an example of what?

  1. Structured data
  2. Text mining
  3. External data
  4. IoT

    

Answer: C – External data

As you can see, the CPCU® 550 exam will not ask you to define anything (as is common in a college exam). Instead, it will ask you a question regarding that definition. This means you must fully understand the definition and fully understand how this definition is applied.

The answer is C. External data is data gathered by the insurer from another outside source. This includes sensors, the internet, and social media. Sources of external data include statistical-plan data, insurance industry data, competitor rate filings, and third-party data. Economic data is one of the most common types of third-party data; this is data regarding interest rates, asset prices, exchange rates, consumer price index, and other information about the economy.

As mentioned in our blog about the CPCU® 550 difficulty, the hardest part of the CPCU® 550 will be memorizing the minor details and complexities of each definition. Notice in this example you must know the types of data, and know wat types of data are considered “external data”.

For more concept questions, check out our CPCU® 550 practice exam.

CPCU® 550 Sample Exam Questions (Second Sample Question)

Calculate the f-score of a confusion matrix given the following: True Positives (TP): 30. False Positives (FP): 20. True Negatives (TN): 10. False Negatives (FN): 5. Round to the nearest whole number.

  1. 60%
  2. 63%
  3. 71%
  4. 86%

Answer: C – 71%

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. For a scenario question, you must fully understand what is being asked and fully understand how to apply the information you have learned from studying.

In this case, the answer is C.

F-score is a comprehensive performance metric that considers both precision and recall, providing a balanced assessment of a model’s effectiveness by taking the harmonic mean of these two measures.

F-score = 2 x [(Precision x Recall) ÷ (Precision + Recall)].

  • Precision = TP ÷ (TP + FP) = 30 ÷ (30 + 20) = 0.60 = 60%
  • Recall = TP ÷ (TP + FN) = Recall = 30 ÷ (30 + 5) = 0.857 = 0.86 = 86%
  • F-score = 2 x [(0.60 x 0.86) ÷ (0.60 + 0.86)].
  • F-score = 2 x [(0.516) ÷ (1.46)]
  • F-score = 2 x 0.353 = 0.706 = 71%

These questions are tricky and will require a bit of critical thinking and question analysis. The easiest way to tackle these questions is to break them down into subsections as we’ve done above. Answer each sub-question to determine the correct answer.

For more scenario-based questions, check out our CPCU® 550 practice exam.

CPCU® 550 Exam – Online Course

Ready to start studying? We are ready to help.

Stop wasting your time. You no longer need to study for 8 weeks to pass your exam (the industry-recommended study time). With our streamlined online course, students pass their exams, on average, in 2 weeks by studying just 1 hour per day. Start your studying today with our CPCU® 550 Full Course (guaranteed to pass or your money back).

Or, if you just need a little extra practice before your exam, check out our CPCU® 550 Practice Exam Course (300+ practice questions).

Free Practice Exam

Ready to get started studying? We’re here to help (for free). Download our free CPCU® 550 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 CPCU® 550 exam, check out 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, 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.

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.

FREE PRACTICE EXAM.

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

>