2011 | VOL. 3 The Edge News to Sharpen Your Knowledge and Hone Your Skills Welcome! In each issue of The Edge, we bring you current information about learning solutions that will help you sharpen your technical knowledge and hone your skills so you can deliver real, measurable business results. The Institutes are particularly excited about the AINS and ACSR program changes and new designations and content we acquired from the Insurance Educational Association. After you read this newsletter, please visit our Web site for complete information on all of this and more. Sincerely, Peter L. Miller, CPCU, President & CEOPlease update your e-mail and login information at www.TheInstitutes.org. Highlights in This IssueCPCU 551 and 552 Changing to Objective Exam Format ■■ CPCU 551 and 552 Objective ExamsExams for CPCU 551 and 552 are being changed from short essay to objectiveformat beginning with the January 15, 2012, to March 15, 2012, testing window. ■■ AINS 21 and 22 ChangesThe essay exam format will be offered through March 15, 2012. Study materials for ■■ ACSR Designationthese two courses are not changing. ■■ IEA Content AcquisitionWe asked Everett D. Randall, CPCU, CLU, AINS, senior vice president of TheInstitutes, for answers to some frequently asked questions: ■■ Designee Spotlight: Nicole Jolley ■■ Continuing Education From CEU.com, Our Business UnitWhy are these exams changing to objective format? ■■ Coming EventsThe objective exam format allows us to test on more content (85 to 100 questionsrather than 30 to 35), which provides greater opportunity for students to ■■ Study Tipsdemonstrate knowledge of the material. It also allows us to provide more crediblefeedback by assignment to help nonpassers better prepare to retake an exam.Finally, objective grading greatly reduces the waiting period for grades, allowing Coming Eventsstudents to progress more efficiently through the program. Join The Institutes at these coming events:Are objective exams easier than essay exams?Contrary to popular opinion, objective exams are not easier than essay exams. ■■ Charlotte I-Day, February 3Whereas students may receive partial credit on an essay question, objective ■■ Houston I-Day, February 12questions have a single correct answer. Starting in 2000, The Institutes transitionednonCPCU exams from essay to objective, and the pass ratios (the percentage of ■■ South Florida I-Day, February 16students who pass a given exam) remained relatively constant. ■■ Eastern North Carolina I-Day, March 7For CPCU 551 and 552, the coverage questions in the current essay format requirestudents to determine whether a loss is covered, which is similar to a true-or-false ■■ Philly I-Day, March 22question. Changing these types of questions to four-answer multiple-choice formatactually increases the difficulty, as the questions will likely require the student toknow not only whether the loss is covered, but also why or why not.Which exam format is better?Both essay exams and objective exams are equally suited for determining whethersomeone has mastered the course material. Many professions such as lawyersand accountants now use the objective exam format for their credentialing exams.In my opinion, objective exams are more realistic in that they require one right or Continued. www.TheInstitutes.org
The Edge News to Sharpen Your Knowledge and Hone Your Skills Continued from front page.Bottom-Line Benefits of the AccreditedCustomer Service Representative (ACSR) wrong answer. Although you are not usually presented with four choices in your job, youdesignation perform the job either correctly or not. While essay exams may provide partial credit, that is not reflective of the “real world.” For example, a claims adjuster would not tell a client, “I■■ Enhance profitability by managing a better book partially resolved your claim.” You do not receive partial credit in the real world. of business and avoiding E&O claims with a more comprehensive knowledge of insurance products The debate over essay exams and objective exams is largely a personal preference.■■ Increase ability to cross-sell products with a thorough Some students perform better on essay exams, while others perform better on objective understanding of client needs exams. Which format a person prefers or performs better on is often a matter of test-■■ Improve overall efficiency with an increased taking preferences. confidence in capabilities and knowledge Visit www.TheInstitutes.org/CPCUexperience for more information.■■ Develop customer loyalty by demonstrating higher levels of professionalism and customer service AINS 21 and 22 ChangesVisit www.TheInstitutes.org/ACSR to learn more. The Institutes have revised the study materials and examination for AINS 21 and AINS 22 (formerly INS 21 and INS 22). Current course study materials expire December 15, 2011. The AINS examination based on expired study materials will be offered through March 15, 2012.“By successfully incorporating ACSR training into Visit www.TheInstitutes.org/AINS for more information.day-to-day agency activities, this designation benefitsindividuals by helping them illustrate their commitment The Institutes Acquire the ACSR Designation From IIABAtoward enhancing the quality of service providedto their clients. Achieving the designation also The Institutes and the Independent Insurance Agents & Brokers of America, Inc. (IIABA)demonstrates a high level of professionalism to an have been partners in the Accredited Customer Service Representative (ACSR ® )agency’s customers and/or prospective customers.” designation program since 1999. The two organizations have agreed to evolve their 12-year partnership to better serve the needs of IIABA members and state associations.— Jennifer Kacmarsky, ACSR Effective immediately, the ACSR designation program joins The Institutes’ family of Director of Education technical insurance knowledge solutions. Independent Insurance Agents & Brokers of New Jersey The Institutes are updating the technical content of the ACSR program. The Institutes and the IIABA will continue to work together to support, promote, and market the ACSR program to the agent and broker community and will release additional information as it becomes available. Visit www.TheInstitutes.org/ACSR for more information. CEU.com Online CE from CEU.com, The Institutes Acquire Specialized Online Courses a business unit of The Institutes have acquired eighteen online courses from the Insurance Educational The Institutes Association (IEA), a premier provider of insurance training and content. The purchase includesSpend more time building your business and earning some of IEA’s more popular online course content:money and less time away from the office. Withthe addition of CEU.com to The Institutes’ family of ■■ Nine courses in the California-specific Workers Compensation Claims Administration (WCCA) certificate and the Workers Compensation Claim Professional (WCCP) designationprofessional development products and services, program (which The Institutes will own and confer)you can earn CE credits quickly and easily from theconvenience of your home or office. CEU.com offers ■■ Eight pre-licensing courses for Arizona, California, and Texasmore than 50 online CE courses to meet the needs of ■■ The online version of the Essentials of Disability Management course from IEA’s Certifiedinsurance agents, brokers, and adjusters. Professional in Disability Management (CPDM) designation programVisit CEU.com now. Get courses. Get credit. IEA and its instructors will continue to teach the classroom, in-house, and instructor-ledGet back to work. versions of the acquired courses and will retain the CPDM designation. Visit www.TheInstitutes.org/IEA for more information.
2011 | VOL. 3 Designee Spotlight: The Institutes in the News In October 2011, the Insurance Research Council (IRC), a Nicole Jolley, Associate Underwriter division of The Institutes, released a new study, The Impact Great American Insurance Group, Metairie, Louisiana of Third-Party Bad-Faith Reforms on Automobile Liability Insurance Costs in West Virginia. According to the report, third-party bad-faith reforms enacted in 2005 reduced As a child, I did not know exactly what I was des- auto liability coverage costs by an estimated $200 million tined to be when I grew up, but I was fairly certain in the first five years. that remaining open-minded about the possibilities In November 2011, the IRC released a report titled New was key to realizing the kind of success I envi- York’s No-Fault System: Final Report on Closed Auto sioned for myself. I had not considered establishing Injury Claims. New findings from this study of personal occupational roots in the insurance industry until I injury protection (PIP) claims closed in 2010 show that learned first-hand about the way in which a single claimed losses for medical expenses, lost wages, and industry can affect the trajectory of a persons life. other expenses related to injuries from auto accidentsIt was during college that I suffered two tragic losses—the deaths of both my mother in the New York City area have risen 70 percent overand father. While it was painful enough to endure those losses emotionally, it would the past decade, surpassing the 49 percent increase inhave been much more difficult to sacrifice completing my college degree in the face medical care inflation over the same period.of a financial hardship as well. If it had not been for my parents’ respective life insur-ance policies, I would not have had the financial support to continue my education. Visit www.insurance-research.org for moreAt that point in time, I knew that my life had been deeply enriched because of this information and to purchase these reports.industry, and my career would unquestionably be founded in insurance.I often recalled what my father used to impress upon me about my future. It sounded a Managing Customer Data Breacheslot like what most parents tell their children when they are young but with a compelling An article titled “Managing Customer Dataadage. My father always said, "You can do anything it is that you want to do; however, Breaches” by Michael W. Elliott, CPCU, AIAF, senioryou have to be willing to put in the work." With that in mind, I embarked on a career in director of knowledge resources for The Institutes,the insurance industry shortly after graduation and focused on the latter part of his motto. appeared in the August 2011 online issue of Risk &It was then that I challenged myself to seek the most highly regarded program in the Insurance magazine.industry and sacrifice a year of recreation in pursuit of a worthy education—the CPCUdesignation. I found security in having vast dreams as long as I worked to put the founda-tions under them, and that is exactly what the designation was for me. When I began my Banking on Case ReservesCPCU journey at the age of 23, I was building the foundation for my insurance career as An article titled “Banking on Case Reserves” by Donnawell as heeding my fathers advice. J. Popow, JD, CPCU, AIC, senior director of knowledge resources and ethics counsel for The Institutes,Even though there were times I waivered in my will to stay the course, I would remind appeared in the August 2011 issue of Claims Advisormyself of the challenges my parents faced with courage and conviction; I would magazine.find confidence in the encouraging words they might bestow upon me if they were Read these articles at:here; and I would hold dear the promises I have made to embrace and live up to www.TheInstitutes.org/articlesthe example they have set for me. It was their character that inspired me to perse-vere through each hurdle of CPCU, and it was because of them that I was fortunateenough to realize my passion for an industry that strives to make people whole again.The foundations my parents fostered within me in my personal life enabled me tobuild solid foundations for success in my professional life, and what I ultimately dis-covered about myself during this journey proved surprising but equally as significantas the education itself. For that, I am eternally grateful. www.TheInstitutes.org
720 Providence Road, Suite 100 Malvern, PA 19355-3433 2011 | VOL. 3 The Edge News to Sharpen Your Knowledge and Hone Your Skills Highlights in This Issue—See Details Inside ■■ CPCU 551 and 552 Objective Exams ■■ Designee Spotlight: Nicole Jolley ■■ AINS 21 and 22 Changes ■■ Continuing Education From CEU.com, Our Business Unit ■■ ACSR Designation ■■ Coming Events ■■ IEA Content Acquisition ■■ Study Tips Study TipsCheck out this video about Do the application questions in the course guide and the The day before the exam, review all words in boldthe benefits of professional online practice test. Make flashcards for the questions you (definitions), all bulleted lists, and anything in adevelopment. get wrong. colored box in the textbook. — Matt Charlton, AU, CIC, CRM — Chris Murphy, CPCU, ARM, AIC Senior Engineer EMC Insurance CompaniesShare your study tips at: publicrelations@TheInstitutes.org | Miss the last issue? Visit www.TheInstitutes.org/Edge 720 Providence Road, Suite 100 | Malvern, PA 19355 (800) 644-2101 | customerservice@TheInstitutes.org www.TheInstitutes.org