Section I – Tips
Section One is important. It builds a foundation on which the rest of the course will be based; the rest of this course will build on top of these core concepts in more detail. If you don’t understand these concepts you will have trouble with the rest of the course. So, make sure to focus on this section!
Importance rank: 5
Out of the five sections in the CPCU® 555 Comprehensive course, we rank this as the 5th most important section. In our opinion, this is the least important section.
Difficulty rank: 5
Out of the five sections in the CPCU® 555 Comprehensive course, we rank this as the 5th most difficult section. That means this section is relatively easy compared to the other sections. In our opinion, this is the easiest section.
Exam – what to expect
You can expect to see the majority of the topics from Section One in Part A of the CPCU® 555 exam. The concepts from this section will primarily be seen as definition and concept-based questions on the actual CPCU® 555 exam.
Example: Mary just moved into her new condo. She lives in a relatively safe part of town, within five miles of a fire station, but would still like to use a risk control technique to limit her property loss exposure. What action should Mary take?
This is a sample of an exam question that you might see from Section One. Notice, this is a case based question. This is one of the tougher types of questions that you will see from part one. This question puts you in the shoes of an insurance professional; you must know the various risk control techniques to choose the best option for her needs.
Before you get into the content, take a quick look at the topics below. This is our recommendation of the most important topics that you MUST know from this section.
- Understand risk control and the risk control techniques.
- Understand risk financing and the risk financing techniques.
- Know the three elements of loss exposure.
- Understand the property and liability loss exposures.
- Know the difference between tangible and intangible property
Remember, every CPCU® 555 exam is different. No single exam is the same. Be sure to study ALL topics (not just our recommendation). This intro to Section One is intended to provide you with a general idea of where your focus should be. Make sure to thoroughly study everything in this section.
Make sure to follow along with your study guide, this will help to ensure that you are taking notes on the most important topics!
Difficulty rank and importance rank are solely the opinion of AssociatePI. This section 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 importance and difficulty sections of AssociatePI’s Comprehensive Course, please email [email protected].