CU Study Guide 2026
Everything you need to pass the CU exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 CU Exam Format at a Glance
📚 CU Topics to Study (69)
✍️ Sample CU Questions & Answers
1. The 'prior approval' rate regulation system differs from 'file-and-use' in that:
Under prior approval, insurers must obtain explicit regulatory approval before implementing new rates, unlike file-and-use where immediate implementation is allowed.
2. An insurance policy is considered an aleatory contract because it is characterized by which of the following?
An aleatory contract is one where the performance of one or both parties is contingent upon an uncertain event. In insurance, the insured pays a relatively small premium, while the insurer may be required to pay a much larger sum if a covered loss occurs. This unequal exchange of value, dependent on chance, is the defining characteristic of an aleatory contract.
3. The doctrine of 'reasonable expectations' in insurance contract interpretation holds that:
The reasonable expectations doctrine protects insureds by enforcing what an ordinary person would reasonably expect the policy to cover, especially when exclusions are hidden or complex.
4. A liability insurer pays defense costs that erode the policy limit. This is known as:
Defense within limits (burning limits) policies reduce the available indemnity limit as defense costs are paid, unlike supplementary payment provisions.
5. What is the main underwriting concern with using third-party data aggregators for risk scoring?
Third-party data may be outdated, incomplete, or subject to fair lending and privacy regulations, requiring underwriters to validate quality and compliance before relying on it.
6. Which NAIC model act establishes standards for unfair claims settlement practices by insurance companies?
The NAIC Unfair Claims Settlement Practices Act prohibits specific claims handling behaviors such as misrepresenting policy provisions, failing to acknowledge claims promptly, and offering unreasonable settlements.