New Mexico Insurance Exam Guides
Pick the license you're studying for. Each guide covers New Mexico-specific requirements, fees, and official links — plus a free practice exam. Then scroll down to explore the New Mexico exam's state-law material, mapped.
Free study resource
What's actually tested on the New Mexico exam — the state regulations, mapped
Every New Mexico insurance exam reserves a block of questions for New Mexico-specific law — the fees, deadlines, limits, and rules that generic national study guides gloss over. This is that material: 108 facts from the TESTivity New Mexico regulations curriculum, organized the way we teach them. Open a branch, explore, and let the structure do some of the remembering for you.
Every fact below carries its source citation and the date we last verified it (most recently July 2026) — and is re-checked on a schedule. Facts marked tested are ones you should expect to see on the exam.
Life 13 facts
The life insurance rules that differ by state — free look, grace, reinstatement.
- Incontestability period tested2 years from the date of issue, during the insured's lifetime
- Grace period for individual life tested30 days (one month)
- Window to reinstate a lapsed policy testedWithin 3 years of premium default (2 years for industrial life), on evidence of insurability and payment of arrears
- Max interest chargeable on reinstatement, if capped testedOverdue premiums bear interest not exceeding 6% per year, compounded annually
- Suicide exclusion period tested2 years from issue — New Mexico fixes a statutory 2-year suicide-exclusion period
- Free look for individual life testedAt least 10 days for individual life, with an unconditional refund
- Free look when a policy is being replaced tested30 days for a replaced life policy or annuity — an unconditional full refund
- Free look for long-term care tested30 days for long-term care
- Required nonforfeiture options testedCash surrender value, reduced paid-up insurance, extended term insurance
- Registrations required to sell variable products testedVariable Life and Variable Annuity is a separate line requiring the Life license plus FINRA/SEC securities registration
- Does the state regulate viatical/life settlements? testedYes — the New Mexico Viatical Settlements Act
- Viator's rescission window testedAt least 15 days from receipt of the proceeds (the contract is deemed rescinded if the insured dies within the period)
- Has the state adopted the NAIC best interest standard? testedYES — New Mexico adopted the NAIC 2020 best interest revision to the Suitability in Annuity Transactions rule (NMAC 13.9.20)
Health 15 facts
Health coverage rules — continuation, prompt pay, mandates, public programs.
- Has the state expanded Medicaid under the ACA? testedYES — New Mexico expanded Medicaid under the ACA, effective January 1, 2014
- Effective date of expansion, if expanded testedJanuary 1, 2014
- Agency administering Medicaid testedTurquoise Care — New Mexico's Medicaid managed-care program (since July 1, 2024; formerly Centennial Care), administered by the New Mexico Health Care Authority
- Federal marketplace or state-based exchange testedA STATE-BASED exchange — beWellnm (the New Mexico Health Insurance Exchange), which runs off HealthCare.gov
- Name of the state CHIP program testedCHIP is delivered through New Mexico Medicaid (no separate consumer brand)
- Clean-claim payment deadline, electronic tested30 days to pay or deny an electronic clean claim
- Clean-claim payment deadline, paper tested45 days for a paper (written) clean claim
- Does the state distinguish electronic vs paper claims? testedYes — New Mexico splits the deadline: 30 days for electronic clean claims, 45 days for paper
- Interest / penalty on late claim payment testedInterest at 1.5 times the prime lending rate per year on amounts unpaid after the deadline
- Is the IRO's external review decision binding on the plan? testedYES — under the Patient Protection Act, an Independent Review Organization decides on external review and its decision binds the carrier
- Employer size at which federal COBRA applies testedFederal COBRA applies at 20+ employees; New Mexico continuation covers group accident & health policies generally
- Employer size range covered by state continuation testedNew Mexico continuation applies to group accident & health policies generally; no minimum employer size is stated in the statute
- Duration of state continuation coverage testedUp to 6 months, then a right to a conversion policy
- Election period for state continuation testedWithin 30 days of the insurer's notice
- Max premium as % of group rate testedContinued or converted coverage at a reasonable, nondiscriminatory rate — New Mexico does not fix a COBRA-style 102% cap
Auto 10 facts
Auto insurance — minimum limits, fault system, required coverages.
- Fault-based (tort) or no-fault testedFAULT-BASED (tort) — New Mexico is an at-fault state, not a no-fault state, and does not require PIP
- Minimum bodily injury liability per person tested$25,000
- Minimum bodily injury liability per occurrence tested$50,000
- Minimum property damage liability tested$10,000
- The memorizable shorthand (e.g. 30/60/25) tested25/50/10
- Uninsured motorist: mandatory / must be offered & rejectable / not required testedMust be OFFERED — uninsured/underinsured motorist coverage must be offered at limits equal to the liability limits, and the insured may reject it in writing
- Underinsured motorist status testedOffered together with UM under § 66-5-301; rejectable in writing
- Personal injury protection status testedNo PIP requirement — New Mexico is a tort state; medical payments coverage is optional
- Contributory / pure comparative / modified comparative negligence testedPURE COMPARATIVE negligence — a claimant's recovery is reduced by their share of fault, with NO percentage bar (even a claimant 99% at fault may recover the remaining 1%)
- Assigned risk / residual market plan for auto testedThe New Mexico Automobile Insurance Plan (the assigned-risk residual market, AIPSO-administered)
CE & Renewal 9 facts
Continuing education and renewal rules — the numbers the exam loves.
- How long a license lasts before renewal testedTwo years (the initial term runs 13-24 months), expiring the last day of the licensee's birth month
- What the renewal date keys off (flat term / birthday / birth year) testedBiennial, expiring the last day of the licensee's BIRTH MONTH (even birth year renews in even years; odd in odd)
- CE hours per renewal period, standard case tested24 credit hours every two years — 21 general plus 3 ethics
- CE hours if holding multiple license types (if different) tested24 total — holding multiple lines does not multiply the requirement
- Ethics hours required per period tested3 hours of ethics, within the 24
- Limits on who may provide CE credits testedCourses and providers must be approved by the Superintendent
- Initial long-term care training requirement tested8 hours of initial long-term care training, then 4 hours each compliance period, for producers who sell LTC
- What happens if CE is not completed (fine / expiry / cancellation) testedA license is not renewed until CE is completed; a lapsed license is reinstated much like a new application
- Any CE exemption (e.g. long-service agents) testedNonresidents whose home state has a CE requirement are exempt; limited-line-only licensees have no CE requirement
Property 7 facts
Property insurance — rate regulation, residual markets, catastrophe exposure.
- Rate regulation system (file-and-use / prior approval / use-and-file) testedCOMPETITIVE 'file-before-use' — insurers file rates before use; prior approval applies only to designated noncompetitive lines (such as farmowners multi-peril, medical malpractice, credit, and mortgage guaranty). Rates must not be excessive, inadequate, or unfairly discriminatory.
- Is insurance credit scoring permitted in personal lines? testedPermitted with restrictions under the Personal Insurance Credit Information Act: an insurer may not use income, gender, address, race, color, national origin, religion, or marital status, and may not decline, cancel, nonrenew, or rate solely on credit without other underwriting factors
- Does the state have a FAIR Plan? testedYES — the New Mexico Property Insurance Program (the FAIR Plan), the insurer of last resort. In 2025 its limits were raised to $750,000 residential and $2,000,000 commercial, driven by wildfire exposure.
- Name of the FAIR Plan, if any testedThe New Mexico Property Insurance Program — the state's FAIR Plan
- Dominant catastrophe perils in the state testedWildfire above all — the driver of the 2025 FAIR Plan expansion — plus hail, high wind, and drought in this arid, inland state
- What license you must already hold to write surplus lines testedA surplus lines broker license issued by the Superintendent is required (in addition to an underlying producer license)
- Is a diligent-effort search of the admitted market required first? testedYes — a diligent effort to place the risk in the admitted market first, documented by a declinations affidavit
Guaranty 10 facts
The safety nets when an insurer fails — and their limits.
- Name of the life & health guaranty association testedNew Mexico Life and Health Insurance Guaranty Association
- Life death benefit limit tested$300,000
- Life cash surrender / withdrawal value limit tested$100,000 net cash surrender value
- Annuity benefit limit tested$250,000 present value of annuity benefits
- Health benefit limit tested$500,000 for health benefit plans (major medical); $300,000 for disability income and for long-term care; $100,000 for other health
- Aggregate per-individual cap, if any tested$300,000 aggregate per individual, except up to $500,000 where a health benefit plan is involved
- Does the state follow the standard NAIC model limits? testedYes — standard NAIC model limits, with tiered health
- Name of the P&C guaranty association testedNew Mexico Property and Casualty Insurance Guaranty Association
- Per-claim cap testedCommonly $300,000 per covered claim (claims of $25 or less are excluded); workers' compensation claims are paid without the cap
- Is using the guaranty association as a sales inducement prohibited? testedYes — using the existence of either guaranty association to sell, solicit, or induce a purchase is prohibited
Workers Comp 5 facts
Who must carry workers' compensation and what it pays.
- Is workers' compensation mandatory for private employers? testedYes — required for employers with 3 or more workers; construction businesses must carry it at ANY number of workers
- Employee count at which coverage is required tested3 or more workers (construction at ANY number). Certain agricultural, domestic, and real-estate-licensee workers are excepted.
- Agency administering workers' compensation testedThe New Mexico Workers' Compensation Administration (WCA)
- Temporary total disability wage replacement rate testedTwo-thirds (66⅔%) of the worker's average weekly wage, capped at the state maximum; benefits begin on the 8th day of lost time (the first 7 days are payable only if disability exceeds 4 weeks)
- Ways an employer may comply (insure / self-insure / group) testedBuy commercial workers' compensation insurance, qualify as an approved self-insurer, or join a group self-insurance program
Regulator 5 facts
Who regulates insurance here and what powers the office holds.
- Name of the state insurance regulator testedThe New Mexico Office of Superintendent of Insurance (OSI)
- Title of the person who heads it testedSuperintendent of Insurance
- How the commissioner is chosen: elected / appointed by governor / appointed by other body testedSELECTED by a nine-member Insurance Nominating Committee (not elected, and not appointed by the Governor) — a distinctive selection method
- Where the state's insurance law is codified testedChapter 59A of the New Mexico Statutes Annotated (the Insurance Code), with regulations in Title 13 of the New Mexico Administrative Code
- Does the regulator sit somewhere unusual (e.g. inside a constitutional commission)? testedYes — the OSI is an INDEPENDENT standalone agency headed by a Superintendent chosen by an Insurance Nominating Committee. It was removed from the Public Regulation Commission (PRC) and made independent effective January 1, 2020, following a 2018 constitutional amendment.
Cancellation 7 facts
When and how policies can be canceled or nonrenewed — heavily tested.
- Initial window during which an insurer may cancel more freely tested60 days — during the first 60 days a policy may be canceled for any reason on at least 10 days' notice
- Notice days to cancel a homeowners policy inside the initial window testedAfter 60 days, at least 15 days' written notice stating an enumerated reason (a substantial change in risk requires 30 days)
- Notice days to cancel a personal auto policy inside the initial window testedAfter 60 days, at least 15 days' written notice stating an enumerated reason
- Notice days for cancellation for nonpayment testedAt least 10 days' written notice for cancellation for nonpayment of premium
- Notice days for cancellation for other permitted causes testedAt least 15 days for an enumerated cause after the first 60 days (30 days for a substantial change in the risk)
- Notice days required for nonrenewal testedAt least 30 days' written notice before nonrenewal
- Must the reason be stated proactively, on request, or not at all? testedYes — after the first 60 days, a cancellation notice must state an enumerated reason (material misrepresentation or fraud, willful or negligent acts increasing the hazard, license revocation, or a fraudulent claim)
Licensing 27 facts
How you get and keep the license — exams, fees, applications, background checks.
- Is there a standalone life license/exam? testedYes — a Life Insurance Producer exam (18-25), taken alone or in the combined Life/Accident & Health exam
- Is there a standalone health license/exam? testedYes — an Accident and Health or Sickness Producer exam (18-26), taken alone or in the combined Life/Accident & Health exam
- Is there a combined life+health license/exam? testedYes — New Mexico offers a combined Life, Accident and Health or Sickness exam (18-27), as well as the individual Life and Accident & Health exams
- Is there a personal lines license/exam? testedYes — a Personal Lines Insurance Producer exam (18-38) for those who do not want a full Property & Casualty authority
- Is P&C one combined license, or split into Property and Casualty? testedBoth — New Mexico offers Property (18-28) and Casualty (18-29) as individual exams AND a combined Property and Casualty exam (18-31), plus a narrower Personal Lines exam (18-38).
- Does the life license cover annuities? testedYes — annuities are sold under the Life line. Variable Life and Variable Annuity is a separate line requiring the Life license plus FINRA/SEC registration.
- Does the P&C license already include personal lines authority? testedYes — a full Property & Casualty authority covers personal-lines risks; the Personal Lines line is a narrower subset
- Full list of exam-based agent license types testedOne New Mexico producer license listing any of: Life · Accident and Health or Sickness · Property · Casualty · Personal Lines — plus Variable, Title, Bail, Crop and Travel lines
- Exam administrator (Prometric / PSI / Pearson VUE) testedPSI Services — at a test center or by online remote proctoring (PSI replaced Prometric effective August 27, 2024)
- Exam fee tested$75 per exam (nonrefundable; valid one year from payment)
- License application fee tested$30 for the resident producer license
- Fee per insurer appointment tested$20 per appointment (affiliation) with an insurer
- Passing score tested70%
- Minimum age to be licensed tested18
- Is pre-licensing education required? testedNO — New Mexico does NOT require pre-licensing education. 'OSI does not... require you to take a pre-licensing study course.' Only the PSI exam is required.
- Pre-licensing hours and any exceptions (e.g. Title, adjusters) testedNone — no pre-licensing course is required. Candidates study the PSI content outlines and sit the exam directly.
- Fingerprints, state police report, or none testedA national fingerprint criminal-background check is REQUIRED, through IdentoGO/Idemia (OSI service code 2BH27J)
- Who takes the prints / issues the report testedIdentoGO/Idemia, using OSI service code 2BH27J
- How long the background report stays valid testedThe fingerprint background report is valid for 90 days
- Deadline to apply after passing the exam testedYou must apply for the license within one year after passing the exam
- How long a passed exam remains valid testedA passing exam supports a license application for one year; the exam registration fee is valid one year from payment
- Waiting period before retaking a failed exam testedYou may retake as soon as the next day, but after FOUR unsuccessful attempts on a line you enter a six-month waiting period
- Limit on number of attempts, if any testedFour attempts per line before a six-month waiting period applies
- Notice required to reschedule/cancel without forfeiting the fee testedReschedule or cancel at least 2 days before the exam to avoid forfeiting the fee
- Where you apply (Sircon / NIPR / state portal) testedNIPR (nipr.com)
- Are temporary licenses available? testedYes — a temporary producer license (up to 180 days, no exam) in defined circumstances such as the death or disability of a producer
- Temporary license duration and training requirement testedUp to 180 days, no exam, to service an existing book (death/disability of a producer, training new personnel, and similar cases)