About CPCU® 520

The CPCU® 520 exam is the second CPCU® exam in a series of eight required exams to complete your CPCU® designation. The CPCU® 520 exam consists of 75 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 49 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 26 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.

Download: Free CPCU® 520 Practice Exam

CPCU® 520 Difficulty

According to nationally published CPCU® pass rates, the CPCU® 520 historically has one of the highest success rates out of all the CPCU® exams. The pass rate is typically around 78%. In my opinion, the CPCU® 520 was the easiest of all the CPCU® exams simply because I was better prepared for the exam format after passing the CPCU® 500 and the material directly related to my experience and training from working in the insurance industry.

The CPCU® 520 exam focuses on insurance operations, such as insurance regulation, underwriting, premium auditing and claims. The reason this exam is easier than most is because insurance professionals gain a solid understanding of the core material from on the job training and experience, meaning you won’t have to learn something completely new. This background knowledge is a HUGE help for understanding the basics of each core insurance operation but unfortunately, the CPCU® 520 will test you on much more than just the basics.

The hardest part of the CPCU® 520 will be learning the minor details and complexities of each insurance function. Even if you’re an expert on the topic, you’ll need to fully study each section because the CPCU® exams are known for testing you on the most minor little details; missing one detail can cause you to choose the wrong answer.

Although this exam has one of the highest pass ratios, DO NOT take it lightly. All CPCU® exams are tough and require you to fully study the online course. Be sure to fully study each chapter for the best results on your exam, even if you consider yourself an expert on one topic.

For more insight, see our blog about the CPCU® 520 Exam Difficulty.

CPCU® 520 – Important Topics

Below we are outlining some important CPCU® 520 exam topics. We recommend you master these topics before attempting the CPCU® 520 exam. This is our opinion of the topics that are important on your exam.

  • Reinsurance – we recommend you heavily focus on reinsurance, in our opinion this is one of the most important topics of the CPCU® 520 content. Understand the reinsurance process, calculate how much the reinsurer will pay for a loss, and know the best reinsurance contract for an insurer given a specific scenario.
  • Marketing – we highly recommend you master the topics of insurance marketing and distribution. Know the best distribution system given the characteristics of the customer and insurer, understand the characteristics of each type of insurance customer, and know the difference between an agent and broker.
  • Risk control – risk control and premium auditing is an important topic. Make sure you know the reason for premium auditing, reason for risk control, and types of premium audits.

For more info about the most important topics see our blog about the CPCU® 520 exam format and topics.

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.

Free Practice Exam

Ready to get started studying? We’re here to help (for free). Download our free CPCU® 520 practice exams to get a feel for the type of questions you will see on the exam.

Download: Free CPCU® 520 Practice Exam

More Information

For more information about the CPCU® 520 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, 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.

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