List of changes to CPCU 540 in 2023

List of changes to CPCU 540 in 2023

***Update 02-27-2024: BigDaddy U’s study materials for CPCU 540 is now up to date with the version of CPCU 540 released in July 2023*** 


The Institutes has released an updated version of the CPCU 540 course titled “Contributing to Insurer Financial Performance” for exams starting on October 15, 2023.

Only a small amount of the course content for the updated CPCU 540 course is brand new. Most of the course pulls from content in the previous CPCU 540 course. Below is a list of the topics in the updated CPCU 540 course and how they correspond to the expired CPCU 540 course. (Objectives from 2020 course in parentheses)

Note: We do not provide any warranties or guarantees concerning the comprehensiveness and accuracy of this list.


CPCU 540: Contributing to Insurer Financial Performance

Module 1: Developing a Holistic View of Insurer Finances

  • Solving Problems With Insurer Financial Analysis (NEW)
  • Factors That Determine an Insurer’s Financial Health (NEW)
  • How Underwriting Contributes to Insurer Finances (NEW)
  • How the Claims Function Contributes to Insurer Finances (NEW)
  • Insurer Finance Department Strategies (Half NEW; Half Mod. 1 – Obj. 2)


Module 2: Identifying Key Financial Measures

  • A Guide to Insurer Performance Ratios (Mod. 5 – Obj. 1)
  • A Guide to Insurer Performance Ratings (Mod. 5 – Obj. 3 & 4)
  • A Guide to Monetary Calculations (All of previous Module 6)


Module 3: Interpreting Insurer Financial Statements

  • GAAP and SAP Basics (Mod. 1 – Obj. 3,4; Mod. 4 – Obj 1,2)
  • The Insurer Balance Sheet (Mod. 2 – Obj. 1)
  • The Insurer Income Statement (Mod. 2 – Obj. 2)
  • Statement of Changes in Shareholders’ Equity and Statement of Cash Flows (Mod. 2 – Obj. 3)
  • Components of the NAIC Annual Statement (Mod. 2 – Obj. 4; Mod. 4 – Obj 3)


Module 4: Analyzing Key Ratio Results

  • Premium-to-Surplus Ratio (Mod. 5 – Obj. 1)
  • Reserves-to-Surplus Ratio (Mod. 5 – Obj. 1)
  • Liquidity Ratio (Mod. 5 – Obj. 2)
  • Profitability Ratios (Mod. 5 – Obj. 2)
  • External Evaluations of Insurer Financial Strength (Mod. 5 – Obj. 3,4)


Module 5: Assessing Investment Opportunities

  • Insurer Investment Portfolio Basics (Mod. 8 – Obj. 1,2,3 & Mod. 9 – Obj. 4)
  • Understanding the Market for Stocks and Bonds (Mod. 8 – Obj. 2,4,5)
  • Investment Evaluation Strategies (Mod. 9 – Obj. 1)
  • Bond Valuation (Mod. 9 – Obj. 3)
  • Investment Portfolio Management Strategies (Mod. 9 – Obj. 2)


Module 6: Strategically Managing Capital

  • Internal Capital Sources (Mod. 10 – Obj. 1) 
  • External Capital Sources(Mod. 10 – Obj. 2)
  • Risk-Based Capital Requirements (Mod. 11 – Obj. 2)
  • The NAIC Risk Management and Own Risk and Solvency Assessment (Mod. 11 – Obj. 3)


Old CPCU 540 Modules completely removed: Module 3 and Module 7.


As the above list illustrates, the vast majority of the topics covered in the 2023 CPCU 540 course were pulled from the 2020 540 course. And while the existing BDU study materials for CPCU 540 no longer follow the same order as the updated course materials, they will still prepare you well for the updated CPCU 540 exam. Just be sure to study the new Chapter 1 from The Institute’s textbook, and be advised that you can skip over the old Modules 3 and 7.

BigDaddy U is working on updating our CPCU 540 study materials to match the content of the new CPCU 540 course. We always provide updates to our materials to at no additional cost, so if you’ve previously purchased our CPCU 540 study materials, the new study materials are now available through your account on our website.


CPCU® and AICTM are trademarks of the American Institute For Chartered Property Casualty Underwriters, d/b/a The Institutes. BigDaddy U is not affiliated or associated with The Institutes in any way, and The Institutes do not endorse, approve, support, or otherwise recognize BigDaddy U or its products or services.



  • Joseph Curreri
    Joseph Curreri
    Posted at 14:11h, 19 December

    My current format has not been updated to reflect the new changes to CPCU 540

    • Elizabeth White
      Elizabeth White
      Posted at 09:45h, 20 December

      We have not yet completed the update to our CPCU 540 study materials. We hope to have the new study materials ready within the first couple months of 2024.

  • crystal
    Posted at 19:00h, 21 December

    When will the new 540 be available?

    • Elizabeth White
      Elizabeth White
      Posted at 09:24h, 22 December

      We hope to have the new study materials ready within the first couple months of 2024.

  • Sandy Lanigan
    Sandy Lanigan
    Posted at 15:42h, 01 May

    Am I able to get the updated version of study materials? Still looking to pass CPCU 540.

    • Elizabeth White
      Elizabeth White
      Posted at 18:27h, 02 May

      The updated digital content is already available through your account. If you’d like an updated study guide, just send us an email with your sign address!