The insurance industry values the education — and on-going education —of its professionals.

Throughout the country, agents must be licensed in each state,and many states require adjusters to be licensed as well. Thislicensing ensures that the fundamentals are understood and can beapplied.

But it doesn't stop there. The professional agent, adjuster,underwriter or loss control specialist realizes how beneficialadvanced education is for one's understanding of the industry, andthe ability to hone one's skills in applying that knowledge.

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There are many organizations providing such education. Educationis so valued within the industry that most companies will pay forclasses, texts and exams in order to support employees in theircareers. Some may even give bonuses for passing classes.

And the most visible reward for this specialized knowledge? Theright to use professional designations after a person's name.

To an insurance outsider — and to a novice in the profession —the alphabet soup that often appears after a person's name ismystifying. So here's a primer on what those post-nominaldesignations mean, and which entity grants them:

PLCS, CLCS and SBCS

The Erlanger, Ky.-based National Underwriter Co. offers three insurancedesignations.

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  • Personal Lines Coverage Specialist,PLCS. Designed for new and experienced professionalsalike, it provides solid foundational and specialized knowledgenecessary to understand personal lines coverages starting withinsurance principles and explaining in depth homeowners, auto, andumbrella coverages.  This is the only designationavailable dealing with personal lines to such an extent. Sixe-learning courses are provided allowing the student to fullymaster complex content. An in-depth knowledge of this informationis key for anyone hoping to specialize in personal lines. Thecontent is written by editors of FC&SBulletins, well-respected providers of insurance policyinterpretation for over 80 years. Continuing education credits areavailable.
  • Commercial Lines Coverage Specialist,CLCS. This is designed to give expert knowledge of thefundamental commercial lines of coverage: general liability,commercial property, workers compensation, business auto, as wellas insurance principles. The coverage guides give complete analysisof commonly used coverage forms. As with PLCS, content is writtenby the editors of FC&S Bulletins, and continuingeducation credits are available.
  • Small Business Coverage Specialist,SBCS. This is the only designation ofits kind. It focuses on the particular coverage needs of smallbusinesses and how to provide them using common policy forms. Itcombines personal lines and commercial lines forms, because smallbusinesses may be home-based or could need commercial coverage.This designation explains when to use which type of coverage, andis also written by the editors of FC&S Bulletins withcontinuing education credits are available.

CPCU

The Malvern, Pa.-based American Institute for CharteredProperty Casualty Underwriters is a large organization thatprovides classes for a variety of designations; some may simply becertificate classes, while others confer a designation. All aregeared towards the property and casualty side of the industry.

The most well-known and respected designation it grants is theChartered Property Casualty Underwriter, CPCU.

The designation consists of four foundation courses, threecourses from either the personal lines or commercial linesconcentration, one elective and one ethics course. The foundationalcourses cover basics in the industry of risk management,accounting, insurance operations and law. The concentrated coursesprovide basics in personal or commercial lines. Continuingeducation credits are available.

CIC

The Austin, Texas-based NationalAlliance for Insurance Education & Research has a number ofdesignations as well, most notably the Certified InsuranceCounselor, CIC.

Again, core courses are required in order to obtain thedesignation, including personal and commercial lines, life andhealth, and agency management. In order to maintain thedesignation, one of a variety of programs must be attendedannually. Again, solid foundational knowledge is provided for keyelements of insurance coverage, using the ISO forms. Life andhealth designations are available as well.

CLU and ChFC

The Bryn Mawr, Pa.-based American College of FinancialServices has a number of designations dealing with the life andhealth and financial advisor sectors of the industry.

Chartered Life Underwriter, CLU andChartered Financial Consultant, ChFC are two ofits well-known designations. Eight classes are required for the CLUcovering insurance and financial planning, life insurance law,estate planning and business owners and professionals planning.Electives include income taxes, group benefits, retirement planningand health insurance. Continuing education credits are required inorder to maintain the designation. The ChFC requires nine classeswhich include financial planning, income taxation, investments,estate and retirement planning plus electives.

CFE

Fraud is such an issue within the industry that there aredesignations for those dealing with fraud. The Austin, Texas-basedAssociation of CertifiedFraud Examiners has a Certified Fraud Examiner,CFE designation. Not specific to insurance, thedesignation course covers financial transactions and fraud schemes,law, investigation, and fraud prevention and deterrence. As always,an exam is required.

AHFI

The Washington, D.C.-based National Health Care Anti-FraudAssociation has the Accredited Healthcare FraudInvestigator, AHFI designation. Requirements include 75hours of training or teaching on healthcare fraud and passing therequired exam. An Investigator's Boot Camp is available fortraining.

RF

For risk management professionals, RIMS has theRIMS Fellow, RF designation. This requirescompletion of three college-level courses in risk management orearning one of the following designations: ARM Association in RiskManagement, CRM Canadian Risk Management, CRM Certified RiskManager, and ALARYS AIRM. Also required is five years' experiencein the industry, four courses in business acumen, attendance at 12days of RIMS Fellow workshops or equivalent online courses. Inorder to maintain the designation, credits must be obtained byattending two days of RIMS Fellow workshops and certainprofessional activity, such as speaking, teaching, publishingarticles or attending conferences and seminars. 

Christine G. Barlow, CPCU, is managing editorof FC&S, a division of National Underwriter Co. andALM. She may be reached at [email protected].

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