CU Cheat Sheet 2026

The 30 highest-yield CU facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which document summarizes the underwriting decision? → Underwriting report
2. Which reinsurance arrangement requires the cedent to offer and the reinsurer to accept every risk within defined parameters? → Obligatory treaty
3. Which type of rating plan adjusts the final premium based on the insured's actual loss experience during the policy period? → Retrospective rating
4. What is subrogation in insurance claims? → Recovering claim costs from a responsible third party
5. What is 'adverse selection' in insurance? → High-risk individuals seeking more coverage
6. What is a 'proof of loss' document? → Formal statement documenting the loss and claim
7. What is a 'fronting arrangement' in the context of reinsurance and portfolio management? → A licensed insurer issues a policy but cedes nearly all risk to a captive or reinsurer
8. What is a deductible in an insurance policy? → Out-of-pocket amount before insurance coverage starts
9. What is the main underwriting concern with using third-party data aggregators for risk scoring? → Data accuracy, completeness, and potential regulatory compliance issues with data use
10. Which metric best measures the overall profitability of an underwriting portfolio before investment income? → Combined ratio
11. Which ratemaking method calculates rates by dividing incurred losses by earned premiums? → Loss ratio method
12. Which reinsurance structure is most commonly used to protect against catastrophic single-event losses such as hurricanes? → Catastrophe excess of loss (Cat XL)
13. Which component of insurance ratemaking represents the expected cost of claims per unit of exposure? → Pure premium
14. Which insurance type covers personal belongings against theft? → Homeowners or renters insurance
15. What is a partial loss in insurance terms? → Damage to only part of the insured property
16. Which term describes the process by which a reinsurer itself purchases reinsurance? → Retrocession
17. What does disability insurance provide? → Income protection during disability
18. What does the term 'claims settlement' refer to? → Resolving the claim by payment or denial
19. Why is accurate documentation important in claims? → It validates the claim and speeds up settlement
20. An insurance policy is considered an aleatory contract because it is characterized by which of the following? → An unequal exchange of value between the insurer and the insured.
21. What can result from non-compliance with insurance regulations? → Penalties, license revocation, and reputational damage
22. What is the role of state insurance departments? → Regulate insurers and protect consumers
23. Who investigates an insurance claim? → Claims adjuster
24. What is the primary role of underwriting in insurance? → To evaluate risk and set premium rates
25. What does 'regulatory compliance' involve? → Following laws, regulations, and guidelines
26. When an underwriter evaluates a company's leverage, they are primarily assessing: → The proportion of the company's assets financed through debt.
27. What does the term 'cession' mean in a reinsurance context? → The amount of risk transferred by the cedent to the reinsurer
28. Which term describes using insurance data analytics to identify accounts that are likely to non-renew before they do so? → Lapse propensity modeling
29. What is 'market conduct examination'? → An evaluation of insurer practices and regulatory compliance
30. What does 'moral hazard' mean in underwriting? → Increased risky behavior by insured individuals