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 testedA policy MAY exclude or restrict coverage for death by suicide within 2 years of issue - the statute caps how far an exclusion may reach; it does not require one
- Free look for individual life testedNew Mexico does not impose a general individual-life free look by rule. 13.9.5 NMAC (Life Insurance Disclosure) refers to a 10-day unconditional refund provision only as a CONDITION that lets an insurer deliver the Buyer's Guide with the policy rather than before accepting premium. Replacement and long-term care DO carry mandated periods.
- 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 one and one-half percent (1.5%) per MONTH 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 - UM/UIM must be made available; the statute sets minimum limits and such higher limits as the insured desires. The insured may reject the coverage, and the rejection must be made part of the policy.
- Underinsured motorist status testedOffered together with UM under § 66-5-301; rejectable, with the rejection endorsed on or attached to the policy
- 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 - specifically the second occurrence of that month following issuance, which is why a first term runs 13-24 months
- 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; failure results in termination of the license, and all CE must be completed before an application for reinstatement
- Any CE exemption (e.g. long-service agents) testedNonresidents who comply with their home state's CE requirement; limited-line-only licensees; licensees continuously licensed 25 years or more WITHOUT a lapse of more than 90 days; residual renewal-fee-only holders; and fraternal benefit society agents
Property 7 facts
Property insurance — rate regulation, residual markets, catastrophe exposure.
- Rate regulation system (file-and-use / prior approval / use-and-file) testedCOMPETITIVE market presumed by statute; filings are subject to a 30-day DEEMER (deemed effective unless disapproved), not classic prior approval. The 13.8.2.28 NMAC designation of noncompetitive lines EXPIRED on 1 October 2010 and was never renewed. 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. Under 13.4.2.9(F)(4) NMAC an applicant must actively hold BOTH current property AND casualty producer licenses before applying.
- Is a diligent-effort search of the admitted market required first? testedYes - a diligent search among authorized insurers first. Since the 2017 amendment the producing broker documents it with a SIGNED STATEMENT to the surplus lines broker (the older 'declinations affidavit' filing was removed).
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 tested$100,000 per covered claim, and $100,000 in total per claimant per occurrence (claims of $25 or less are excluded); workers' compensation claims are paid in FULL, without the cap
- Is using the guaranty association as a sales inducement prohibited? testedYes for the LIFE AND HEALTH association - using its existence to sell, solicit or induce a purchase is prohibited. Article 43 contains no equivalent provision for the P&C association.
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 (66 2/3%) of the worker's average weekly wage, capped at the state maximum. Separately, no benefits are allowed for a disability lasting 7 days or less; if disability lasts more than 4 weeks, benefits are allowed from the date of disability.
- 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 office of Superintendent of Insurance was created by a constitutional amendment approved 6 November 2012 and stood up as of 1 July 2013, moving insurance regulation out of the Public Regulation Commission. NMSA 1978 § 59A-2-1(A) classes the office as an ADJUNCT AGENCY under § 9-1-6, not a wholly independent one.
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)