DEFINITION of 'Associate In Commercial Underwriting - AU'

Associate In Commercial Underwriting - AU -  is a person with qualifications to evaluate risk for insurance companies. Insurance is protection against future financial loss from injury, illness, property damage or liability for the losses of others. Insurance underwriters review applications for insurance coverage. They evaluate the potential risk, and accept, reject or modify the policy according to law or company standards. This professional designation is awarded by The Institutes upon successful completion of three national exams. The program leading to this designation is designed for agency and company underwriters, field representatives and account managers; this requires a working knowledge of insurance principles and coverages.

BREAKING DOWN 'Associate In Commercial Underwriting - AU'

The AU designation program complements commercial underwriting skills. The term underwriter derives from financial bankers, who would accept some of the risk on a given venture, historically a sea voyage. In exchange for a premium, they would write their names under the risk information which was written on a slip created for this purpose. Today, Insurance underwriters are professionals who evaluate and analyze the risks of insuring people and assets and establish pricing for accepted insurable risks.  Underwriters help price life insurance, health insurance, commercial liability insurance, and homeowners insurance. 

Course Requirements

According to the Institute, "To earn the Associate in Commercial Underwriting (AU) designation, you must pass four foundation courses.  You can also earn the Associate in Commercial Underwriting—Management (AU-M) designation by passing the four AU foundation courses plus AU 67 Strategic Underwriting Techniques.

In order to satisfy the Ethics requirement, you must pass one of the following free, 50-question online exams: Ethical Guidelines for Insurance Professionals (Ethics 311); Ethics 312 Ethics and the CPCU Code of Professional Conduct."

The Institutes calls itself "the industry’s trusted and respected knowledge leader, The Institutes and our affiliates are committed to meeting the evolving professional development needs of the risk management and insurance community. We prepare people to fulfill their professional and ethical responsibilities by offering customer-focused and innovative educational, research, networking, and career resource solutions. We offer a wide variety of courses, programs and professional development opportunities to fill knowledge gaps at any level and in a variety of functional areas within the risk management and insurance industry."

The organization offers these professional designations: Chartered Property Casualty Underwriter (CPCU); Associate in General Insurance (AINS); Associate in Claims (AIC); Associate in Risk Management (ARM); Associate in Commercial Underwriting (AU); Accredited Adviser in Insurance (AAI); Associate in Reinsurance (ARe); Associate in Insurance Data Analytics (AIDA); Associate in Insurance Services (AIS); and Associate in Management (AIM).

RELATED TERMS
  1. Underwriting Income

    Underwriting income is profit generated by an insurer's underwriting ...
  2. Accredited Advisor In Insurance ...

    An Accredited Advisor in Insurance (AAI) is a professional designation ...
  3. Underwriting Expenses

    Underwriting expenses are costs and expenditures associated with ...
  4. Underwriter

    An underwriter is any party that evaluates and assumes another ...
  5. Assigned Risk

    Assigned Risk is when an insurance company is required to provide ...
  6. Associate In Reinsurance (ARe)

    Associate In Reinsurance (ARe) is a designation earned by insurance ...
Related Articles
  1. Insurance

    12 Insurance Questions for High Net Worth Families

    High net worth families should ask themselves these 12 questions regarding comprehensive insurance.
  2. Insurance

    How To Invest In Insurance Companies

    Knowing the special circumstances that insurance companies operate under helps in evaluating whether or not a listed insurance company is a good investment and whether the economic environment ...
  3. Tech

    How Big Data Has Changed Insurance

    No longer confined to technology, big data has become integral to providing solutions to the insurance industry's long standing challenges.
  4. Insurance

    Answers to High-Risk Life Insurance Questions

    Do you have questions about obtaining life insurance if you are considered higher risk?
  5. Insurance

    The History of Insurance in America

    Insurance was a latecomer to the American landscape, largely due to the country's unknown risks.
  6. Insurance

    4 Things That Keep You From Getting Life Insurance

    We look at four common reasons people give for not applying for life insurance, and see if they're legitimate.
  7. Insurance

    Common Life Insurance Questions Answered

    Choosing life insurance can seem daunting at first. Here are answers to commonly asked questions.
  8. Financial Advisor

    Is Life Insurance From Your Employer Enough?

    Covering the needs of the ones you would leave behind is not easy. But efforts to secure a life insurance policy outside of work should pay off.
  9. Insurance

    Term Life Insurance: Everything You Need to Know

    Term life insurance is an affordable way to financially protect your loved ones after your death. Here's what you need to know before purchasing a policy.
  10. Insurance

    Buying Life Insurance As a Non-U.S. Citizen

    While buying life insurance as a non-U.S. citizen is possible for many, insurance companies consider additional factors when underwriting a policy.
RELATED FAQS
  1. What does the underwriter do in a new stock offering?

    Learn the role an underwriter plays for an initial public offering, and the steps an underwriter takes in preparing for an ... Read Answer >>
  2. Why is my insurance premium so high/low?

    Insurance premiums can be affected by many factors including: type and amount of risk size of deductible amount of coverage ... Read Answer >>
  3. How does the insurance sector work?

    Learn more about the insurance sector, a historically safe place for equity investors and the home of some of the largest ... Read Answer >>
Trading Center