Associate in Commercial Underwriting – Definition

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Associate In Commercial Underwriting Definition

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.

A Little More on What is Associate In Commercial Underwriting (AU)

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.

Course Levels

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
  • Occupancy
  • Underwriting Direct Exposures
  • Construction
  • 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
  • Reinsurance
  • Designing Underwriting Policy
  • Rate making

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