NEW MEXICO
STATE
EXAM
NEW MEXICO
Life, Health & Accident
Actual Exam Questions
& Answers
Insurance Licensing Examination
Comprehensive Study Guide with Answer Key
Life Insurance • Health Insurance • Accident Insurance • New Mexico Regulations
, NM Life, Health & Accident • Exam Questions & Answers Page 1
Exam Questions & Answers
1 A notice of information practices must be given to a policyholder at LEAST every ___ year(s)
✔ Answer: Every three years
How many employees must an employer have for the Consolidated Omnibus Budget
2
Reconciliation Act of 1985 (COBRA) to apply?
✔ Answer: 20 or more employees
3 An example of an unfair claims settlement practice is:
✔ Answer: Misrepresenting insurance policy provisions affecting a loss
Proof of loss on a health insurance claim must be submitted to an insurer within ___ days after
4
the insured's date of loss.
✔ Answer: 90 days
5 Which of the following statements regarding the Fair Credit Reporting Act is TRUE?
✔ Answer: An insurer does NOT need to discuss any credit history inconsistencies with the applicant
6 An example of misrepresentation is (1):
✔ Answer: Providing incorrect, misleading, incomplete, or materially untrue information in the license
application
7 An example of misrepresentation is (2):
✔ Answer: Making an untrue or incomplete statement in the course of an insurance transaction
8 Which of these is NOT an Unfair Claims Settlement Practice?
✔ Answer: Refusing to pay persons bringing false or fraudulent claims
In New Mexico, legal action can be taken for up to ___ year(s) against an insurer for failure to
9
pay health insurance claims after proof of loss was submitted.
✔ Answer: Up to 3 years
New Mexico Insurance Licensing • Study Guide
STATE
EXAM
NEW MEXICO
Life, Health & Accident
Actual Exam Questions
& Answers
Insurance Licensing Examination
Comprehensive Study Guide with Answer Key
Life Insurance • Health Insurance • Accident Insurance • New Mexico Regulations
, NM Life, Health & Accident • Exam Questions & Answers Page 1
Exam Questions & Answers
1 A notice of information practices must be given to a policyholder at LEAST every ___ year(s)
✔ Answer: Every three years
How many employees must an employer have for the Consolidated Omnibus Budget
2
Reconciliation Act of 1985 (COBRA) to apply?
✔ Answer: 20 or more employees
3 An example of an unfair claims settlement practice is:
✔ Answer: Misrepresenting insurance policy provisions affecting a loss
Proof of loss on a health insurance claim must be submitted to an insurer within ___ days after
4
the insured's date of loss.
✔ Answer: 90 days
5 Which of the following statements regarding the Fair Credit Reporting Act is TRUE?
✔ Answer: An insurer does NOT need to discuss any credit history inconsistencies with the applicant
6 An example of misrepresentation is (1):
✔ Answer: Providing incorrect, misleading, incomplete, or materially untrue information in the license
application
7 An example of misrepresentation is (2):
✔ Answer: Making an untrue or incomplete statement in the course of an insurance transaction
8 Which of these is NOT an Unfair Claims Settlement Practice?
✔ Answer: Refusing to pay persons bringing false or fraudulent claims
In New Mexico, legal action can be taken for up to ___ year(s) against an insurer for failure to
9
pay health insurance claims after proof of loss was submitted.
✔ Answer: Up to 3 years
New Mexico Insurance Licensing • Study Guide
