The most recent release of the CPCU 540 textbook includes all of the following edits:
- GAAP versus IFRS (ch 1): Edited and reorganized
- Policy acquisition costs (ch 4): Expanded to include a detailed example
- A.M. Best Financial Strength Ratings (ch 5): Completely redone, with new content
- IRIS Ratios (ch 5): Ratio explanations greatly condensed
- Financial Markets & Institutions (ch 7)
- This is a new chapter
- First few pages about financial markets matches the first few pages in the Bonds & Stocks chapter from the second edition textbook
- The rest of chapter is completely new content:
- Financial Intermediation
- Financial Institution Risks
- Fintech & Insurtech
- Bonds, Stocks, and Derivatives (ch 8)
- Same content from the Bonds & Stocks chapter of the second edition textbook
- New section added on derivatives
- Mutual insurer reorganization (ch 10): Removed
- Catastrophe bonds (ch 10): Edited & rewritten
- Insurance securitization (ch 10): New diagram added
- NAIC’s Risk Management and Own Risk & Solvency Assessment model act (ch 11): Newly added section
- Economic Capital for Insurers (ch 11): Edited to include an example
- Economic capital analysis (ch 11): Edited
- The Underwriting Cycle (ch 12 of second edition textbook): Entire chapter removed
(Chapters noted refer to the location of these topics in the new third edition textbook unless otherwise noted)
There have been some changes to the online videos associated with the new edition of the course, but it does not appear that The Institutes™ is done updating their online content. Even though we used an access code for the third edition materials, the chapter numbers of the videos matched those of the second edition textbook.
For those of you who currently are using the second edition textbook, here are two key dates you need to know:
- Students have until June 15, 2018 to take exams based on the current second edition textbook.
- Starting July 2018, all tests will be based on the new third edition textbook only.
We’ve updated our study guide!
We’ve launched our CPCU 540 study materials, which is based on this latest third edition release! It is jam-packed with tons of bonus content to help you master the concepts – get your e-bundle today!
CPCU 540 Study Guide e-Bundle – Only $18.99
- For use with 3rd edition textbook
- FREE lifetime updates (whenever we update our materials, you get access to the new version at no additional charge)
- Delivered instantly as PDF (up to 5 download attempts within 1 year of purchase date)
- Includes:
- Study Guide
- BONUS: Introductory Lessons
- BONUS: Formulas Module
- BONUS: Formulas Cheat Sheets
- BONUS: How to Memorize CPCU Formulas
- BONUS: GAAP Formulas & Ratios Practice Problems
- BONUS: How to Do GAAP Financial Statement Analysis
- BONUS: GAAP vs SAP Reference Sheet
- BONUS: IRIS Ratios Reference Sheet
- BONUS: Cash Flow Valuation Practice Problems (with walk-throughs)
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