CPCU® 555 Exam Questions: How to approach and conquer your CPCU® exam

CPCU® 555 Exam Questions

The CPCU® 555 exam questions are tough, these questions focus on the minor details and differences of the personal insurance product. The CPCU® 555 exam consists of 85 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 57 concept questions; these questions will test your understanding of a definition or topic. The multiple-choice answers will generally provide 2 or 3 partially correct answers and one “best” answer.
  • Part B: Case questions – The second section of the exam will be approximately 28 case questions; these questions will require you to apply your knowledge to a specific scenario or event. You will be given a real-life scenario; your job will be to select the best recommendation to solve the given scenario.

In this blog we will break down a sample question from part A and a sample question from part B. We will detail exactly how to solve each type of problem and provide some insight into the type of questions you will see on the CPCU® 555 exam.

CPCU® 555 Questions Format

If you have not previously taken a CPCU® exam, you will be in for quite the surprise. The questions on these CPCU® exams will be much different than what you may be used to from past exam experience 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® 555 Sample Exam Questions – Part A

Amy has scheduled her new bracelet on a personal inland marine policy for $2,500. While visiting relatives, Amy damages her bracelet. The actual cash value of the bracelet at the time of the damage was $3,000. The cost to repair the bracelet is $1,000. The cost to replace the bracelet is $4,000. How much will Amy’s insurer pay for the covered loss?

  1. $2,500
  2. $3,000
  3. $1,000
  4. $4,000

 

Answer: C $1,000

As you can see, a concept question will not ask for a simple definition, but it will ask you a question in regard to that definition. This means you must fully understand the definition and fully understand how this definition is applied within personal insurance, meaning you must know “what is an Inland Marine policy”, “what is covered by an Inland Marine policy” and “How are claims paid under an Inland Marine policy”

For more concept questions, check out our CPCU® 555 practice exam.

CPCU® 555 Sample Exam Questions – Part B

Actuaries are analyzing the personal automobile year-end results for the last three years. Based on the results detailed below, what is the average loss cost for personal automobiles over the past three years?

  1. $702
  2. $3,000
  3. $649
  4. $2,773

 

Answer: A $702 (Sum of incurred loss divided by sum of exposure units)

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 this type of question, you must fully understand what is being asked in this scenario and fully understand how to apply the information you have learned from studying. In this example, you are required to use the table given to you in order to determine what information is relevant in calculating the average loss cost. You must know “what is loss cost” and “how is lost cost calculated”

For more scenario based questions, download our CPCU® 555 practice exam.

Free Practice Exam

Ready to get started studying? We’re here to help (for free). Download our free CPCU® 555 practice exams to get a feel for the type of questions you will see on the exam.

Download: Free CPCU® 555 Practice Exam

More Information

For more information about the CPCU® 555 exam, checkout some of our other free resources:

Disclaimer

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.

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