Detailed List of Changes to CPCU 540 (3rd Edition)
We have received a copy of the new CPCU® 540 - Finance and Accounting For Insurance Professionals textbook and have compiled a list of confirmed changes between the old second edition and the newly updated third edition. Please note: We do not provide any guarantee or...
REDIRECT – How Actuaries Estimate Loss Reserves
In addition to calculating insurance rates, actuaries are responsible for estimating loss reserves. Using various statistical tools, their goal is to predict how much the insurance company will pay out in claims so that the company can set aside enough money to pay...
REDIRECT – The Institutes Provides List of Updated Topics in CPCU 540 (3rd Edition)
Update: A detailed list of changes to CPCU® 540 is now available here. The Institutes™ has formally added CPCU 540 - Finance and Accounting For Insurance Professionals™ to their list of updated courses. The announcement posted on The Institutes' official website...
CPCU 540 Fundamentals: Stocks versus Bonds
In this part of our three-post CPCU® 540 Fundamentals series, we will teach you about stocks and bonds. The Institutes' doesn't go into these types of investments too much until Chapter 8, but they come up right from the start of the course and reappear over and over...
REDIRECT – The Institutes Provides Summary of Changes to CPCU 500 (3rd Edition)
Update: A detailed list of changes to CPCU 500 is now available here. Additional information has been made available regarding The Institutes™' upcoming changes to the CPCU 500 course. As mentioned in a previous blog post, The Institutes' confirmed that one of the...
CPCU 540 Fundamentals: Policyholders Surplus
In this part of our three-post CPCU® 540 Fundamentals series, we will delve into one of the most important insurance-related financial concept: policyholders surplus. Because this concept comes up so often through the entire course, you are much better off if you go...
CPCU 540 Fundamentals: The Accounting Equation
In CPCU 540, there are several concepts that are referred to right from the start and continue to appear repeatedly throughout the textbook, but for some reason, The Institutes' course does not immediately define these concepts nor does it provide a thorough...
REDIRECT – Why You Should Do CPCU 520 Right Before CPCU 540
A commonly-asked question about the CPCU® program is what order you should take the classes in. Since none of the classes have a prerequisite, you can take them in whatever order you want. That said, we recommend taking CPCU 520 (Insurance Operations) right before...
CPCU & AINS Benefits that Your Employer Might Have To Offer
Many insurance companies provide incentives to encourage their employees to pursue the CPCU® and AINS® designations. For companies that don't, their employees don't have to assume that their workplace is not willing to provide support in some way. In this post, we'll...
What is Normal Distribution?
Confused about how normal distribution in CPCU® 500 works? You are not alone! This tip will help shed some light on this tricky concept. Normal distribution (also known as standard distribution) simply refers to one of the most prevalent data patterns, where the most...
Understanding Rate-Making Methods
The actuarial chapter of CPCU 520 introduces three different rate-making methods that insurance companies use to decide what rates to charge for their insurance products. The goal of this tip to explain the methods in a more simplified manner, so that they are easier...
Impossibility, Frustration, and Impracticality in Contract Law
Of the many ways to legally terminate a contract, CPCU 530 discusses the concept of impossibility and how that differs from frustration and impracticality. This tip will explore the differences between the three in more detail and provide examples to help improve your...