Associate in Commercial Underwriting - Explained
What is an Associate in Commercial Underwriting?
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Back To: INSURANCE & RISK MANAGEMENT
What is an Associate In Commercial Underwriting?
The Associate in Commercial Underwriting refers to a professional designation that the Insurance Institute of America awards to individuals that successfully complete four national exams. Two of the four exams are designated for the AU program, while the other two are for Chartered Property Casualty Underwriter courses (CPCU). AU is basically an individual who possesses qualifications that enable him or her to work as a risk evaluator in insurance firms. The work of insurance underwriters is typically to review insurance coverage applications. They have the role of carrying out an evaluation to determine if there is any risk involved in various insurance covers. They can accept, reject, or modify the policies as per the company's standards or the law. To be able to do this, one requires having a working knowledge related to coverage and insurance principles.
What Does an Associate In Commercial Underwriting Do?
Generally, the Associate in Commercial Underwriting is a program designed to help individuals build a strong foundation in underwriting as well as enhance their professional confidence. Through the AU program, individuals are able to gain a broader understanding of advanced underwriting techniques. The program also helps individuals to develop a disciplined methodology when it comes to liability exposures and underwriting commercial property. The training program for an AU designation adopts a working knowledge to do with insurance coverage and principles. The AU professional designation is designed for the following:
- Chartered Property Casualty Underwriters
- Casualty Underwriter
- Associates in General Insurance
- Associate in insurance services such as brokers and agents
- Associates in Claims
- Associates in Commercial Underwriters
- Accredited Adviser in Insurance
- Underwriting managers and supervisors (Associates in Management
- Associates in Reinsurance
- Associate in Insurance and Data Analysts
- Account managers
- Managers in the line of business
About Program Requirements
For a person to qualify for the Associate in Commercial Underwriting designation, he or she must first pass four foundation courses. Another alternative for AU designation qualification is for an individual to pass the AU 67 Strategic Underwriting Techniques and the four AU foundation courses.
Associate in Commercial Underwriting is available on two levels. The course levels are as follows:
- Intermediate level
- Advanced level
Types of Associate in Commercial Underwriting Courses
The list below consists of various AU courses:
- The AU designation courses include the following:
- AU Foundation courses
- AU 61 Underwriting Commercial Property
- AU 60 Commercial Underwriting Principles
- AU 23 Commercial Insurance
- AU 67 Strategic Underwriting Techniques
- AU-M Course
- AU 62 Underwriting commercial Liability
The Associate in Commercial Underwriting Ethics
For one to satisfy the ethics requirement, he or she must first pass one of the following which is offered online free of charge:
- Ethics 311 also known as Ethical Guidelines for Insurance Professionals
- Ethics and the CPCU Code of Professional Conduct also known as Ethics 312
It is important to note that the two do not count as credit for one to obtain the AU designation. In other words, this is just an additional qualification that is mandatory for a person who has already obtained the AU designation.
Key Benefits of Associate in Commercial Underwriting
Undergoing the AU designation program has the following benefits:
- It enhances professional confidence in an individual
- It broadens the understanding of advance underwriting techniques
- It helps in shaping a strong and more profitable book of business by developing a disciplined approach to liability exposures and underwriting commercial property.
- It can also be through the application of an effective method of risk selection as far as commercial liability insurance is concerned.
Generally, the AU designation is a professional credential that is undisputed for those who work in the capacity of a commercial line underwriter. The AU designation is an indication that a person who works in the insurance field possesses comprehensive knowledge in the following areas:
- Fundamentals of Underwriting
- Underwriting Direct Exposures
- Financial Analysis and Pricing
- Protection and External Exposure
- Commercial Crime Insurance
- Indirect Loss Underwriting
- Liability and Advanced Techniques/Legal Foundations
- Workers Compensation
- Qualitative Techniques for Underwriters
- Commercial Auto
- Designing Underwriting Policy
- Rate making
- What is insurance?
- Captive Agent
- Independent Agent
- Captive Insurance Company
- Combined Ratio
- Claims Adjuster
- Capital at Risk
- Assigned Risk
- Incurred But Not Reported
- Qualified Actuary
- Cession (Re-Insurance)
- Burning Cost Ratio
- What is an insurance contract?
- Accidental Means
- Anti-stacking Provisions
- What is an insurable interest?
- What are the common categorizations of insurance?
- National Association of Insurance Commissioners
- Insurance Regulatory Information System
- American Academy of Actuaries Definition
- American Association of Insurance Services Definition
- American Council of Life Insurance Definition
- American Insurance Association Definition
- American Risk and Insurance Association Definition
- LLoyd's of London
- Associate in Insurance Services (AIS) Definition
- Associate in Loss Control Management Definition
- Associate in Marine Insurance Management Definition
- Associate in Personal Insurance Definition
- Associate in Reinsurance (ARe) Definition
- Associate in Risk Management Definition
- Associate in Commercial Underwriting Definition
- Associate in Insurance Accounting and Finance Definition
- Associate in Surplus Lines Insurance Definition
- Chartered Insurance Professional Definition
- Chartered Life Underwriter Definition
- Chartered Property Casualty Underwriter Definition
- Vehicle insurancePrivate Passenger Auto Insurance Risk Profile
- Underinsured Motorist Coverage
- Uninsured Motorist Coverage
- Omnibus Clause
- Health Maintenance Organization
- Capitated Contract
- Point of Service Plan
- Children's Health Insurance Program
- Disability Insurance?
- Credit Disability Insurance
- Life Insurance?
- Cash Surrender Value
- Absolute Beneficiary
- Acceleration Life Insurance
- Accelerated Benefit
- Accelerated Option
- Accelerative Endowment
- Charitable Gift Life Insurance
- Incontestability Clause
- Waterfall Concept
- Assumed Interest Rate
- Clean Sheeting
- Hazard Insurance
- Homeowners, Renters, and Fire Insurance?
- Participating Community (Flood Insurance)
- Insurance Considerations for Business
- Business Liability Insurance
- Commercial General Liability
- Liability Risk Retention Act
- Excess Insurance and Umbrella Insurance Policy
- Business Interruption Insurance
- Key Person Insurance Definition
- Own-Occupation Policy
- Self-Funded Health Insurance Plan
- Basket Retention Policy
- Commercial Blanket Bond
- Alternative Risk Transfer Market Definition
- Commercial Property Casualty Market Index Survey
- What are the primary obligations of the insurer?
- Earned Premium
- Reservation of Rights Letter
- Collateral Source Rule
- What are the primary obligations of the insured?
- Insurance Premium
- Affidavit of Loss
- What is the general structure of an insurance contract?
- Ambiguity Principle
- Accommodation Line
- What are the common disputed provisions in an insurance contract?
- Absolute Exclusion
- All Risks Clause
- What is required for the termination of an insurance contract?
- Risk Management
- Professional Risk Manager
- Associate in Management (AIM)
- Financial Risk Manager
- Forecasting (Business)
- Objective Probability
- Unconditional Probability
- Enterprise Risk Management (ERM)
- Operational Risk
- Business Recovery Risk
- Political Risk
- Asset Protection
- Performance Bond
- Barra Risk Factor Analysis Definition
- Above Ground Risk (Mining Industry)
- Bumbershoot Policy (Maritime)
- Abandonment Clause (Boat or Vessel)
- Bobtail Liability Insurance (Trucking Industry)
- Anti-Indemnity Statute (Construction)