A New Mexico insurance consultant is paid by the client for advice. What may the consultant not receive?Answer: Any part of a commission paid by an insurer or insurance producer. Source: NMSA 1978, Section 59A-11A-7(A)
A New Mexico license was not continued on time. The superintendent may still act on a request received within thirty days, with what fee?Answer: One hundred fifty percent of the continuation fee otherwise required. Source: NMSA 1978, Section 59A-11-10(C)
A New Mexico licensee does not tell the superintendent of a change of address within thirty days. What penalty results?Answer: $50. Source: NMSA 1978, Section 59A-12-17(G)
A New Mexico producer diverts premium funds held for others to personal use without consent. Of what is the producer guilty?Answer: Larceny by embezzlement. Source: NMSA 1978, Section 59A-12-22(A)
A New Mexico producer who does not remit premiums at once and keeps no separate account must remit them to the insurer within how long?Answer: Within 15 days after receipt. Source: NMSA 1978, Section 59A-12-22(B)
Show all 72 questions (67 more)
Licensing and the superintendent, continued
A person wilfully misrepresents material information in an application for a New Mexico insurance license. What is the offense on conviction?Answer: A misdemeanor punishable by a fine not to exceed $500. Source: NMSA 1978, Section 59A-11-21
A terminated New Mexico producer renews policies during the year after termination. What commission is earned on those renewals?Answer: A rate not less than the rate in effect prior to termination. Source: NMSA 1978, Section 59A-11-13(D)
A violation of the New Mexico Insurance Code is found willful and intentional. How high may the administrative penalty go for each violation?Answer: Up to $10,000. Source: NMSA 1978, Section 59A-1-18(B)
After a New Mexico insurer terminates a producer's contract for a reason not listed as cause, what may the producer do with the insurer's policies in force?Answer: Renew them for a term of one year, if the insureds meet current underwriting standards. Source: NMSA 1978, Section 59A-11-13(D)
For how long is a New Mexico insurance consultant license issued?Answer: 2 years. Source: NMSA 1978, Section 59A-11A-3(D)
For how long, at most, may an order of the New Mexico superintendent suspend a license?Answer: A period not to exceed 1 year. Source: NMSA 1978, Section 59A-11-16(A)
How long after a missed renewal fee may a New Mexico producer bring back the same lapsed license with no new written examination?Answer: Within 12 months from the due date of the renewal fee. Source: NMSA 1978, Section 59A-12-17(D)
How long is the term of a New Mexico insurance license?Answer: Perpetual, contingent upon payment of fees and completion of any continuing education. Source: NMSA 1978, Section 59A-11-10(A)
How long may the New Mexico superintendent allow a licensee to pay an administrative fine levied in lieu of suspension?Answer: A period not to exceed 60 days. Source: NMSA 1978, Section 59A-11-17
How much written notice must a New Mexico insurer give before terminating a contract appointing an individual as an independent insurance producer?Answer: At least 180 days prior to the termination. Source: NMSA 1978, Section 59A-11-13(A)
How often may the same New Mexico licensees share commissions with each other?Answer: Infrequently only, so appointment by the insurer stays the rule. Source: NMSA 1978, Section 59A-12-24(C)
In lieu of suspending or revoking a license, what administrative fine may the New Mexico superintendent levy on the licensee?Answer: Not less than $100 nor more than $500. Source: NMSA 1978, Section 59A-11-17
The New Mexico superintendent denies an application for a license. Within what time may the applicant ask in writing for a hearing on the denial?Answer: Within 30 days of the date of issuance of the denial. Source: NMSA 1978, Section 59A-11-8(C)
The New Mexico superintendent directs an inquiry to a licensee about a transaction. What must the licensee do?Answer: Promptly furnish the requested information, under oath if so specified. Source: NMSA 1978, Section 59A-4-3
On what date does a New Mexico business entity license renew, where it renews on a biennial basis?Answer: March 1 of the biennial year. Source: NMSA 1978, Section 59A-11-10(B)
Over what period must a New Mexico producer have attended the required continuing education before a license continues?Answer: During the 24 months next preceding expiration of the current license period. Source: NMSA 1978, Section 59A-12-26(A)
To whom does the New Mexico insurance consultant licensing act not apply?Answer: A person admitted to the practice of law, acting within the scope of that practice. Source: NMSA 1978, Section 59A-11A-2
What is the penalty for acting as an insurance consultant in New Mexico without a license?Answer: A fine of not more than $500 or up to six months in county jail, or both. Source: NMSA 1978, Section 59A-11A-8
What penalty may the New Mexico superintendent impose for a licensee's failure to timely report continuing education credits?Answer: Not to exceed $50. Source: NMSA 1978, Section 59A-12-26(D)
When does a New Mexico individual insurance license renew and continue?Answer: On a biennial basis on the last day of the licensee's month of birth. Source: NMSA 1978, Section 59A-11-10(B)
Where no other classification applies, what is every violation of the New Mexico Insurance Code?Answer: A petty misdemeanor punishable by a fine not to exceed $500. Source: NMSA 1978, Section 59A-1-18(A)
Where no other monetary penalty is set, what administrative penalty may be assessed for each violation of the New Mexico Insurance Code that is not willful?Answer: Not over $5,000. Source: NMSA 1978, Section 59A-1-18(B)
With whom may a New Mexico agent or broker share a commission on insurance placed in the state?Answer: Only the agent's licensed solicitor, a licensed agent of the insurer or a licensed broker. Source: NMSA 1978, Section 59A-12-24(A)
Life insurance and group life law 11
A New Mexico group life policyholder misses a premium that is not the first. How many days of grace does the policy allow?Answer: 31 days. Source: NMSA 1978, Section 59A-21-12
A New Mexico life policy has a cash surrender value. Once how many full years' premiums are paid must its loan provision apply?Answer: 3 years. Source: NMSA 1978, Section 59A-20-9(A)
A New Mexico participating life policy defers payment of an apportioned dividend. How long may the deferral last and still count as payable in cash?Answer: Not over 1 year from the date of apportionment. Source: NMSA 1978, Section 59A-20-8
A New Mexico policyowner applies for a policy loan in cash. For how long may the insurer put off granting it?Answer: 6 months after application. Source: NMSA 1978, Section 59A-20-9
At what age may a New Mexico minor, notwithstanding minority, contract for annuities or insurance?Answer: Not less than 15 years of age. Source: NMSA 1978, Section 59A-18-7(B)
For how many years after a premium default does a New Mexico ordinary life policy stay open to reinstatement?Answer: 3 years. Source: NMSA 1978, Section 59A-20-12
How many members must a New Mexico group life policy issued to a professional or business association insure?Answer: At least 25 members. Source: NMSA 1978, Section 59A-21-8
To whom must the benefits be payable when a person procures New Mexico insurance on the life of another individual?Answer: To the insured or his personal representatives, or to a person with an insurable interest. Source: NMSA 1978, Section 59A-18-4(A)
Under New Mexico group life law, a dependent child beyond the age of majority may be covered up to what age while attending an educational institution?Answer: A maximum of 25 years of age. Source: NMSA 1978, Section 59A-21-10
Where a New Mexico life policy fixes a time for settling a death claim after proofs arrive, how long may that time run?Answer: 2 months from the receipt of proofs. Source: NMSA 1978, Section 59A-20-14
Which policies does the New Mexico Insurance Code call "industrial life insurance"?Answer: Policies in face amount of $2,500 or less marked "industrial policy". Source: NMSA 1978, Section 59A-20-2(B)
Annuities, twisting and credit insurance 5
A New Mexico debtor is covered by credit life insurance. By when must the policy or certificate be delivered to the debtor?Answer: Within 30 days of the date the indebtedness is incurred. Source: NMSA 1978, Section 59A-25-7
A person wilfully violates a final order under the New Mexico credit life and credit health insurance article. What is the most that person forfeits to the state?Answer: Not over $2,000. Source: NMSA 1978, Section 59A-25-14
A stipulated payment on a New Mexico individual annuity falls due and is missed. What period of grace must the contract give?Answer: 1 month, but not less than 30 days. Source: NMSA 1978, Section 59A-20-18
How does New Mexico define the prohibited practice of "twisting"?Answer: Misrepresenting or misleadingly comparing policies to induce a person to lapse, surrender or exchange one. Source: NMSA 1978, Section 59A-16-6
What is the highest interest a New Mexico annuity insurer may charge on a payment made during the grace period?Answer: Not exceeding six percent per annum. Source: NMSA 1978, Section 59A-20-18
Health insurance law 9
A misstatement in an application for New Mexico comprehensive major medical coverage is neither fraudulent nor willful. What may the issuer do?Answer: Prospectively rate and collect the premium that would have been charged. Source: NMSA 1978, Section 59A-22-5(A)
A New Mexico group health policy may pay an extended disability benefit on the insured's death. What is the most it may pay?Answer: Not exceeding $1,000. Source: NMSA 1978, Section 59A-23-5
A New Mexico health policy with dependent coverage may not end an unmarried dependent's coverage by reason of age before which birthday?Answer: The 26th birthday. Source: NMSA 1978, Section 59A-22-30.1
A New Mexico member exercising the continuation or conversion right must notify the employer or insurer and pay the premium within how long after the insurer's notification?Answer: Within 30 days. Source: NMSA 1978, Section 59A-18-16
For a New Mexico individual health policy that is not comprehensive major medical, after how long may misstatements other than fraudulent ones no longer void the policy?Answer: After 2 years from the date of issue. Source: NMSA 1978, Section 59A-22-5(B)
From what date does a New Mexico comprehensive major medical policy bar the use of application misstatements, other than willful or fraudulent ones, to void the policy?Answer: As of the date of issue of the policy. Source: NMSA 1978, Section 59A-22-5(A)
How long must a claimant wait after furnishing proof of loss before suing on a New Mexico individual health policy?Answer: 60 days. Source: NMSA 1978, Section 59A-22-14
How long must a New Mexico group health policy with hospital, surgical and medical benefits let a member continue coverage after employment ends, before conversion?Answer: A period of 6 months. Source: NMSA 1978, Section 59A-18-16(A)(2)
On an employer's request, a New Mexico group health insurer must make coverage available to regular part-time employees who average at least how many hours a week?Answer: At least 20 hours per week over a six-month period. Source: NMSA 1978, Section 59A-23-7.5
Trade practices, fraud and penalties 12
A false claim to a New Mexico insurer involves a potential loss of over $20,000. What grade of offense is it?Answer: A second degree felony. Source: NMSA 1978, Section 59A-16-23
A New Mexico insurance professional has a reasonable belief that an act of insurance fraud is being committed. What does the Insurance Fraud Act require?Answer: Disclose what is known about it to the superintendent and cooperate with any investigation. Source: NMSA 1978, Section 59A-16C-6(A)
A New Mexico insurer does not pay the amount justly due for 45 days after proof of loss. At what rate does it owe interest?Answer: One and one-half times the prime lending rate for New Mexico banks. Source: NMSA 1978, Section 59A-16-21(B)
A person knowingly presents a false claim to a New Mexico insurer and the potential loss is $250 or less. What grade of offense is it?Answer: A petty misdemeanor. Source: NMSA 1978, Section 59A-16-23
A person receives a New Mexico cease and desist order for a prohibited practice. Within how long must the person comply or request a hearing in writing?Answer: Within 20 days after receipt of the order. Source: NMSA 1978, Section 59A-16-27(A)
A person who is not a licensed agent knowingly receives a rebate of premium in New Mexico. What is the penalty on conviction?Answer: A misdemeanor punishable by a fine of not over $1,000. Source: NMSA 1978, Section 59A-16-18
After how long without paying the amount justly due does a New Mexico insurer become liable for interest on a claim?Answer: 45 days after required proof of loss has been furnished. Source: NMSA 1978, Section 59A-16-21(B)
For what period must a New Mexico insurer keep a complete record of complaints received?Answer: The preceding three years or since the last examination, whichever is shorter. Source: NMSA 1978, Section 59A-16-22
What may a person in New Mexico not collect as premium or charge for insurance?Answer: A sum for insurance not then provided or in due course to be provided by a policy. Source: NMSA 1978, Section 59A-16-24(A)
What must New Mexico claim forms and applications for insurance carry under the Insurance Fraud Act?Answer: A permanently affixed statement warning that a knowingly false claim or application is a crime. Source: NMSA 1978, Section 59A-16C-8
When are the listed claims practices unfair and prohibited under the New Mexico Insurance Code?Answer: When knowingly committed or performed so often as to indicate a general business practice. Source: NMSA 1978, Section 59A-16-20
Which New Mexico insurers must prepare and submit an anti-fraud plan to the superintendent by July 1 each year?Answer: Those that reported $10,000,000 or more in direct written premiums in New Mexico in the previous calendar year. Source: NMSA 1978, Section 59A-16C-10(A)
Guaranty association 7
A New Mexico business owns many non-group life policies with one failed member insurer. What is the most the association covers for that single owner?Answer: $5,000,000. Source: NMSA 1978, Section 59A-42-4(G)
A New Mexico member insurer becomes insolvent. How do the association's limits treat a life policy's death benefit and its net cash surrender value on one person's life?Answer: Death benefits up to $300,000, but not more than $100,000 in net cash surrender and withdrawal values. Source: NMSA 1978, Section 59A-42-4
A New Mexico member insurer pays its guaranty assessment late. What yearly interest is added from the due date?Answer: Six percent a year. Source: NMSA 1978, Section 59A-42-8(A)
A New Mexico member insurer wants to appeal an action of the guaranty association's board to the superintendent. How soon must the notice of appeal be filed?Answer: Within 30 days after that action. Source: NMSA 1978, Section 59A-42-12(A)
An insolvent New Mexico member insurer wrote a health benefit plan. What is the association's ceiling for it on one person's life?Answer: $500,000. Source: NMSA 1978, Section 59A-42-4
How soon must the New Mexico superintendent notify the guaranty association of an insolvent insurer?Answer: Not later than 3 days after receiving notice of the determination of the insolvency. Source: NMSA 1978, Section 59A-42-10(A)(1)
What size must the board of the New Mexico Life and Health Insurance Guaranty Association be, counted in member insurers?Answer: Not less than seven nor more than eleven. Source: NMSA 1978, Section 59A-42-6(A)
How this list was compiled: Own questions, written from New Mexico Statutes Annotated 1978, Chapter 59A (Insurance Code): Articles 1, 2, 4, 11, 11A, 12, 16, 16C, 18, 20, 21, 22, 23, 25 and 42, read on 2026-10-13 on NMOneSource.com, the New Mexico Compilation Commission's site (https://nmonesource.com/nmos/nmsa/en/nav_date.do; Chapter 59A is at https://nmonesource.com/nmos/nmsa/en/item/4438/index.do). Each question names its section and links to the chapter. The topics start from the Insurance Regulation part (10 percent, with the statute sections beside each topic) of the content outlines New Mexico Life Insurance, Series 18-25, New Mexico Accident and Health or Sickness Insurance, Series 18-26, and New Mexico Life, Accident and Health or Sickness Insurance Producer, Series 18-27, effective July 1, 2026, linked from the candidate bulletin on the examination page that the Office of Superintendent of Insurance links at https://osi.state.nm.us/en/insurance-professionals/individuals-and-agencies/ (the combined outline: https://proctor2.psionline.com/media/programs/NMINS/18-27nm.pdf). Licence: Own work. Every question, wrong choice and explanation was written for this site from the text of the law. Nothing comes from a testing vendor, a prep course, a study guidebook or an exam question pool.
How it works
This unofficial New Mexico health insurance exam study guide is 72 practice questions of our own from Insurance Code Chapter 59A, for the life and the accident and health producer exams. Not affiliated with the Office of Superintendent of Insurance.
Read the full guide
A study guide for the health insurance license exam in NM: the law part
The outline's one state law section is Insurance Regulation, 10 percent of every exam: licensing, the superintendent's powers, producer regulation, unfair trade practices and the Insurance Fraud Act, each printed with its section of Chapter 59A. The first group and the trade practices group follow that list.
What else the Insurance Code says
The outline's other sections name general topics with no citation. Where the Code speaks to one, a question is added: policy provisions, group coverage, continuation rights, credit insurance and the guaranty association. The superintendent's rules in Title 13 NMAC are not asked.
An insurer must give an independent producer at least 180 days' written notice, with the reason, before terminating the contract (59A-11-13).
Individual licenses continue every two years on the last day of the licensee's month of birth (59A-11-10).
Comprehensive major medical: no misstatement defense from the date of issue unless willful or fraudulent (59A-22-5).
Questions and answers
How many questions are on the New Mexico health insurance exam?
The outlines effective July 1, 2026 list 100 items in 2 hours for the Accident and Health or Sickness exam (Series 18-26), the same for Life (18-25), and 150 items in 2.5 hours for the combined exam (18-27).
What score do you need to pass the New Mexico insurance exam?
The candidate bulletin says you must get 70 percent correct to pass, and that 5 to 10 unscored experimental questions may be added. Insurance Regulation is 10 percent of each outline: 10 items on a single-line exam, 15 on the combined one.
Is a prelicensing course required for the New Mexico insurance exam?
No. The candidate bulletin says the Office of Superintendent of Insurance does not specify an official study manual and does not require a pre-licensing study course. Continuing education comes after licensing, over each 24 months (NMSA 1978, Section 59A-12-26).
Are these the real New Mexico insurance exam questions?
No. They are our own, written from the Insurance Code. This site has never seen the state exam, and the Office of Superintendent of Insurance did not write or review them. Exam mode draws 15 questions, the size of the combined exam's Insurance Regulation part.