Associate in Personal Insurance – Definition

Cite this article as:"Associate in Personal Insurance – Definition," in The Business Professor, updated December 3, 2019, last accessed August 9, 2020, https://thebusinessprofessor.com/lesson/associate-in-personal-insurance-definition/.

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Associate In Personal Insurance (API) Definition

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.

A Little More on What is Associate In Personal Insurance (API)

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 program’s 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

Reference for “Associate In Personal Insurance (API)”

https://www.theinstitutes.org/guide/designations/associate-personal-insurance-apitm

https://www.investopedia.com/terms/a/associate-personal-insurance-api.asp

https://associatepi.com/associate-in-personal-insurance/

https://www.payscale.com/research/US/…Associate_in_Personal_Insurance_(API)/Salary

www.abtrainingcenter.com/api.asp

Academics research on “Associate In Personal Insurance (API)”

Economic and market predictors of insolvencies in the life-health insurance industry, Browne, M. J., Carson, J. M., & Hoyt, R. E. (1999). Economic and market predictors of insolvencies in the life-health insurance industry. Journal of Risk and Insurance, 643-659. This study identifies factors exogenous to individual insurers that are statistically related to the overall rate of life-health insurer insolvencies. This is a departure from the methodologies of prior studies, which have focused primarily on firm-specific characteristics in assessing insolvency risk. Empirical analysis is based on quarterly data from 1972 through 1994. Results indicate that life-health insurer insolvencies are positively related to increases in long-term interest rates, personal income, unemployment, the stock market, and to the number of insurers, and negatively related to real estate returns. Findings support the hypothesis that economic and market variables are important predictors of life-health insurer failure rates.

 

Purchase of travel insurance as an enterprise mobile service process, Njuguna, J. N. (2016). Purchase of travel insurance as an enterprise mobile service process (Doctoral dissertation, Strathmore University). The insurance sector has been faced by several challenges, the main one being a slow uptake of individuals acquiring insurance products. With the population increasing, the Kenyan economy results in a situation where it is under-served, and its assets under-insured. The other challenge facing the insurance sector is the lack of an automated purchasing process. This results in a low market penetration and low insurance awareness. Through the use of technology, most insurance companies‟ processes are automated in the way the main functions such as data capture, record keeping, and calculation of the costing for the services provided, are carried out. However, the use of technology as an extension of the enterprise service process has not been tapped into. By having a mobile process extend the already existing automated process, it would increase the correlation between the frequency of contact and customer satisfaction. It would also raise customers‟ expectation of simplicity and transparency, and also increase the speedy delivery of services to customers. This dissertation provides a comprehensive study of the insurance purchase process, challenges facing the insurance purchase process and existing solutions, platforms and the enterprise mobile service process. Data was collected using observations and interviews, pointing out the challenges faced in the sector. System Development Life Cycle was adopted as a software methodology for the development of the mobile and web applications. A mobile application as an extension to an already existing system was developed, as well as a web application that reflects on payment made by clients, that is the transaction and travel details. The mobile application makes a call reference to a payment API system, pesapal, to establish safety and security during payment. It also makes reference to an existing company‟s rating guide, so as to provide quotes for each service selected by the user. The final system was tested by random users at the Jomo Kenyatta International Airport to check if requirements were set. It was conducted by developers and potential users of the application.

The costs of consumer choice for auto insurance in states without no-fault insurance, O’Connell, J., Carroll, S., Horowitz, M., & Abrahamse, A. (1995). The costs of consumer choice for auto insurance in states without no-fault insurance. Md. L. Rev.54, 281.

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