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Property Claim Services (PCS), a Verisk unit, designates an event as a U.S. catastrophe when industry insured losses are projected to exceed which threshold?

A
B
C
D
to track
2026 Statistics

Key Facts: ACRR Exam

2025

Year ACRR Designation Launched

The Institutes

70%

Passing Score per Course

The Institutes ACRR program

$415

Cost per Course (~$1,200 total)

The Institutes course catalog

$25M

PCS Catastrophe Loss Threshold (since 1997)

Property Claim Services / Verisk

1-in-250

Common Return Period for Cat PML Benchmarking

Industry standard

First

First Designation Dedicated to Cat Risk in RMI

The Institutes 2025 announcement

ACRR is a new (2025) designation from The Institutes built around catastrophe risk and resiliency. The program covers cat types (hurricane, wildfire, earthquake, flood, SCS, pandemic, terror, cyber CAT), cat modeling fundamentals (AIR, RMS, Karen Clark), mitigation and IBHS FORTIFIED, cat risk transfer (CAT bonds and ILS), climate change impacts, business continuity, and ethics. CE-approved in many states and aimed at experienced cat risk professionals.

Sample ACRR Practice Questions

Try these sample questions to test your ACRR exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Property Claim Services (PCS), a Verisk unit, designates an event as a U.S. catastrophe when industry insured losses are projected to exceed which threshold?
A.$5 million across one or more states
B.$25 million across one or more states
C.$100 million in a single state
D.$1 billion nationwide
Explanation: Since 1997, PCS has defined a U.S. catastrophe as an event that causes $25 million or more in direct insured property losses and affects a significant number of policyholders and insurers. The threshold was raised from $5 million to $25 million in 1997 to reflect industry growth.
2On the Saffir-Simpson Hurricane Wind Scale, a Category 3 hurricane has sustained winds within which range?
A.74-95 mph
B.96-110 mph
C.111-129 mph
D.130-156 mph
Explanation: The Saffir-Simpson scale defines Category 3 as 111-129 mph sustained winds, which is also the threshold for a 'major hurricane' (Cat 3+). Cat 1 is 74-95, Cat 2 is 96-110, Cat 4 is 130-156, and Cat 5 is 157+ mph.
3Which scale is the modern standard used by USGS to measure earthquake magnitude for moderate-to-large events?
A.Modified Mercalli Intensity Scale
B.Richter Local Magnitude Scale (M_L)
C.Moment Magnitude Scale (M_w)
D.Saffir-Simpson Magnitude Scale
Explanation: The Moment Magnitude Scale (M_w) replaced Richter as the modern standard because it more accurately measures the energy released by larger earthquakes, where Richter saturates. Modified Mercalli measures shaking intensity at a location, not magnitude at the source.
4What does the acronym WUI stand for in wildfire risk management?
A.Wildfire Underwriting Index
B.Wildland Urban Interface
C.Western U.S. Initiative
D.Wind-driven Urban Ignition
Explanation: The Wildland Urban Interface (WUI) is the area where human development meets or intermingles with undeveloped wildland vegetation. WUI properties carry the highest wildfire loss potential because structures provide fuel and ignition sources adjacent to natural fuels.
5Which peril category has shown the largest sustained increase in insured losses over the past decade according to industry sources such as Swiss Re and Verisk?
A.Earthquake in California
B.Severe convective storm (SCS)
C.Tsunami
D.Volcanic eruption
Explanation: Severe convective storms (hail, tornadoes, straight-line winds) have driven a sustained, multi-decade increase in U.S. insured losses, frequently producing $50-80B+ in global insured SCS losses in recent years. Earthquake, tsunami, and volcanic losses are episodic and far smaller in aggregate.
6What is the primary distinction between the National Flood Insurance Program (NFIP) and private flood insurance?
A.NFIP only covers commercial property; private only covers residential
B.NFIP is administered by FEMA with rate caps and statutory limits; private flood is offered by carriers without those statutory caps
C.Private flood insurance is illegal in coastal states
D.NFIP covers earthquake-induced flooding; private flood does not
Explanation: NFIP is administered by FEMA, has statutory coverage limits ($250K building / $100K contents for residential), and uses Risk Rating 2.0 pricing. Private flood carriers can underwrite higher limits, broader coverage, and risk-adjusted pricing without those statutory constraints.
7On the Enhanced Fujita (EF) tornado scale, an EF3 tornado has 3-second gust wind speeds within which range?
A.65-85 mph
B.111-135 mph
C.136-165 mph
D.200+ mph
Explanation: EF3 tornadoes have estimated 3-second gust wind speeds of 136-165 mph and produce severe damage. EF0 is 65-85, EF1 is 86-110, EF2 is 111-135, EF4 is 166-200, and EF5 is over 200 mph.
8Which of the following is most accurately classified as a cyber catastrophe (cyber CAT) event?
A.A single ransomware attack on one mid-sized law firm
B.A widespread, systemic event such as NotPetya (2017) that simultaneously affected thousands of organizations globally
C.A phishing email that successfully compromises one user's credentials
D.A scheduled software patch that briefly causes downtime at one company
Explanation: Cyber CAT events are systemic, accumulating losses across many insureds simultaneously — NotPetya (2017) caused over $10B in damages and is the canonical cyber CAT example. Single-insured incidents are normal cyber claims, not cat events.
9Storm surge is BEST described as which type of hurricane peril?
A.Wind damage to roofs
B.Lightning-induced fires
C.Abnormal rise of seawater above predicted astronomical tide caused by hurricane winds and pressure
D.Inland flash flooding from rainfall after the storm has weakened
Explanation: Storm surge is the abnormal rise of seawater above the predicted astronomical tide, generated primarily by hurricane winds pushing water onto the coast and amplified by low central pressure. It is historically the deadliest hurricane hazard.
10Which of the following is most often cited as a demonstrated pandemic catastrophe for insurance markets?
A.The 1918 H1N1 'Spanish Flu' and the 2020 COVID-19 outbreak
B.Seasonal flu epidemics
C.Localized norovirus outbreaks on cruise ships
D.Annual measles cases in unvaccinated populations
Explanation: Pandemic CAT events are global, multi-line loss aggregations. The 1918 flu killed an estimated 50 million people and the 2020 COVID-19 pandemic produced more than $40B in industry insured business interruption, event cancellation, and life losses, making both canonical pandemic CATs.

About the ACRR Exam

The ACRR (Associate in Catastrophe Risk and Resiliency) is a 2025-launched designation from The Institutes for experienced risk and insurance professionals managing catastrophe exposure. It is the first designation that addresses catastrophes specifically within the risk management and insurance (RMI) context, covering catastrophe identification, modeling, mitigation, resilience-building, and risk transfer for natural and human-caused events.

Questions

100 scored questions

Time Limit

2 hours

Passing Score

70%

Exam Fee

$415 per course (~$1,200 total) (The Institutes)

ACRR Exam Content Outline

20%

Catastrophe Types

Hurricane, wildfire, earthquake, flood, severe convective storm, tornado, pandemic, terrorism, and cyber CAT events with their hazards, scales, and loss patterns.

20%

Catastrophe Modeling Fundamentals

AIR Worldwide, RMS, and Karen Clark cat models; EP curves, AAL, PML, return periods, and the four-component model framework (hazard, exposure, vulnerability, financial).

15%

Mitigation, Building Codes & FORTIFIED

IBHS FORTIFIED Roof/Silver/Gold, building codes (IBC/IRC), wildfire defensible space, seismic retrofits, and mitigation premium credits.

20%

Insurance & Reinsurance Cat Risk Transfer

Cat reinsurance treaties, CAT bonds and insurance-linked securities (ILS), Lloyd's CAT capacity, FHCF, CEA, and parametric insurance triggers.

10%

Climate Change & Future Cat Risk

IPCC AR6 findings, transition vs physical climate risk, sea-level rise, and changing frequency/severity trends for hurricanes, wildfires, and SCS.

10%

Disaster Response, Business Continuity & Resiliency

FEMA BRIC, Stafford Act, NIMS/ICS, ISO 22301 business continuity, supply chain resilience, and community resiliency frameworks.

5%

Ethics & Compliance

The Institutes Code of Ethics, model use governance, climate disclosure (SEC, NAIC), and regulatory compliance for cat risk professionals.

How to Pass the ACRR Exam

What You Need to Know

  • Passing score: 70%
  • Exam length: 100 questions
  • Time limit: 2 hours
  • Exam fee: $415 per course (~$1,200 total)

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

ACRR Study Tips from Top Performers

1Master the four cat model components (hazard, exposure, vulnerability, financial) — most modeling questions are framed around them
2Memorize key thresholds: PCS catastrophe definition, Saffir-Simpson categories, EF tornado scale, and FORTIFIED Roof/Silver/Gold criteria
3Get comfortable with EP curves, AAL, PML, and 1-in-100 / 1-in-250 return periods — they recur across modeling and risk-transfer questions
4Review IPCC AR6 findings and the difference between physical and transition climate risk before taking the exam
5Use NOAA, FEMA, IBHS, and Artemis (CAT bond market) as free reference sources alongside The Institutes' course materials

Frequently Asked Questions

What is the ACRR and why is it called the first-of-its-kind designation?

The ACRR (Associate in Catastrophe Risk and Resiliency) is a designation launched by The Institutes in 2025 for experienced risk and insurance professionals. It is described as the first designation that addresses catastrophes specifically within the risk management and insurance context, integrating catastrophe identification, modeling, mitigation, risk transfer, and resilience-building into a single curriculum rather than spreading those topics across multiple general designations.

How many courses are in the ACRR program and what do they cover?

The ACRR is delivered through a course set covering catastrophe types (hurricane, wildfire, earthquake, flood, severe convective storm, pandemic, terrorism, and cyber CAT), catastrophe modeling fundamentals (AIR, RMS, Karen Clark), mitigation and building codes (including IBHS FORTIFIED), cat risk transfer (reinsurance, CAT bonds, ILS, parametric), climate change, disaster response, business continuity, and ethics. Total cost is approximately $1,200 across the course set at $415 per course.

What is the passing score and exam format for ACRR courses?

Each ACRR course exam requires a 70% passing score and follows The Institutes' standard exam format with multiple-choice questions delivered through online proctoring or Pearson VUE testing centers. Exams are typically 2 hours and contain approximately 100 questions. Like other Institutes designations, ACRR exams test scenario application, not just memorization.

Who should pursue the ACRR designation?

ACRR is aimed at experienced risk and insurance professionals already working with catastrophe exposure: cat modelers, reinsurance underwriters, climate risk analysts, property underwriters in cat-prone states, risk managers for large corporate or municipal clients, and regulators. It assumes a background in insurance and risk management, so first-time insurance candidates typically pursue AINS or CPCU before ACRR.

Is the ACRR CE-approved for state insurance licensees?

Yes, like most Institutes designations, ACRR coursework is approved for continuing education credit in many states. Specific CE hours vary by state and by course. Candidates should confirm CE eligibility with their state Department of Insurance before enrolling, as not every course will be approved in every jurisdiction.

How does ACRR differ from CPCU or ARM?

CPCU is a broad property-casualty designation covering operations, legal, financial, and personal/commercial coverages. ARM focuses on enterprise risk management. ACRR is narrower and deeper, focused exclusively on catastrophe risk: cat modeling, FORTIFIED building standards, ILS markets, climate science integration, and disaster resiliency. Many ACRR candidates already hold CPCU or ARM and add ACRR to specialize.