Associate in Personal Insurance - Explained
What is an Associate in Personal Insurance?
Written by Jason Gordon
Updated at April 8th, 2023
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Back To: INSURANCE & RISK MANAGEMENT
What is an Associate In Personal Insurance?
The Associate in Personal Insurance is a professional designation awarded to professionals who successfully complete the course revolving around personal lines insurance, usually by the Insurance Institute of America. Individuals holding the API designation are considered to demonstrate competency in the area of non-commercial insurance, pricing, understanding of underwriting, and portfolio management.
What Does an Associate In Personal Insurance Do?
The AIP designation is a perfect designation for those who are starting to advance their careers. The program consists of three exams, and out of the three, two are for the Chartered Property Casualty Underwriter title. The designation is the most prestigious title in the property-casualty industry. It helps individuals in advancing their education. In addition, it provides knowledge to professionals in the insurance industry by boosting their current performance in their workplace. The API title requires an applicant to memorize various policies specifics like:
- Various endorsements
- Underwriting criteria
- Conditions
The program is recommended for professionals working in the field of personal insurance. These individuals need this designation to help them increase their general personal insurance knowledge as well as advancing their careers. The insurance personnel who can benefit from the API designation program included the following:
- Line business managers
- Agents
- Agency principles
- Brokers
- Customer service representative
- Personal lines underwriters
- Claim adjusters
The AIP program gives individuals useful knowledge to describe to customers things such as:
- Why there is an increase in premiums
- How to adjust their insured property so that its exposure to loss can be reduced
- How policy adjustment can help in achieving better coverage
How to Earn the API Designation
To obtain the Associate in Personal Insurance designation, he or she must complete a number of courses and exams covering a number of personal insurance contract aspects as well as the personal insurance industry. Also required of the applicant is to complete ethics professional requirements.
API Program Course and Exam Requirements
As far as the study-course is concerned, an applicant is supposed to complete the API programs coursework and exams. Coursework for this program mainly focuses on topics related to personal insurance such as:
- Underwriting
- Personal insurance
- Property insurance
- Marketing
- Liability insurance
- Auto insurance
- Risk management
The API course is a self-taught course, although instructor-led classes are sometimes available based on the area. The applicant must first complete the course to be able to take exams. It takes about 12 to 18 months to complete the AIP program. The state period is for both coursework and examinations. Note that it is not a must for an applicant to complete all coursework and examinations at once. He or she is free to spread out the coursework if the circumstance demands. The applicant can purchase the course material and exam from the test-taking authorized centers. The administration of both coursework and exams are taken on a computer. However, it is worth noting that the API has no continuing education requirements.
The Program Courses
The API program consists of two completion paths. An applicant must complete one of the two competing paths for him or her to earn the API designation. They include: Completion Path A Path A consists of the following courses:
- API 28- Personal Insurance (Underwriting and Marketing Practices)
- AINS 22- Personal Insurance
- AINS 21 Property and Liability Insurance Principles
- API 29- Personal Insurance (Portfolio Management)
Completion Path B
- API Personal Insurance (Underwriting and Marketing Practices)
- CPCU 555- Personal Risk Management and Property-Casualty Insurance
- CPCU 556- Financial Planning
- API 28- Personal Insurance (Underwriting and Marketing Practices)
- CPCU 555- Personal Risk Management and Property-Casualty Insurance
- CPCU 556- Financial Planning