New Mexico Life, Accident & Health Insurance 2026/2027 | New Mexico Life &
Health Insurance Producer License Exam Study Guide & Practice Questions | NM
OSI & PSI Insurance Licensing Exam Prep, Life Insurance, Accident & Health or
Sickness Insurance, New Mexico Insurance Laws & Regulations, Producer
Licensing, Ethics, Unfair Trade Practices, Insurance Contracts, Life Insurance
Policies, Term & Whole Life, Universal Life, Annuities, Policy Provisions & Riders,
Health Insurance, Disability Income, Medical Expense Plans, Managed Care,
Medicare, Medicaid, Long-Term Care, Group Insurance, Underwriting, Claims,
Replacement, Consumer Protection & Detailed Rationales
Question 1: In New Mexico, which state agency is responsible for
licensing and regulating life and health insurance producers?
A. New Mexico Public Regulation Commission
B. New Mexico Office of Superintendent of Insurance
C. New Mexico Department of Finance and Administration
D. New Mexico Consumer Protection Division
CORRECT ANSWER: B. New Mexico Office of Superintendent of
Insurance
Rationale: The New Mexico Office of Superintendent of Insurance (OSI) is
the state agency that regulates insurance producers and insurers, handling
licensing, enforcement, and consumer protection under the New Mexico
Insurance Code.
Question 2: Under New Mexico Administrative Code, what is the
minimum age requirement for an individual applying for a resident
insurance producer license?
A. 16 years of age
B. 18 years of age
C. 21 years of age
D. 25 years of age
CORRECT ANSWER: B. 18 years of age
Rationale: The New Mexico Administrative Code § 13.4.3.10 establishes
that an applicant for an individual insurance producer license must be at
least 18 years of age.
,Question 3: Which line of authority under New Mexico law includes
coverage for sickness, bodily injury, or accidental death and may
include benefits for disability income?
A. Casualty insurance
B. Property insurance
C. Accident and health or sickness insurance
D. Life insurance
CORRECT ANSWER: C. Accident and health or sickness insurance
Rationale: Per N.M. Admin. Code § 13.4.3.9, accident and health or sickness
insurance includes coverage for sickness, bodily injury, or accidental death
and may include disability income benefits.
Question 4: Which New Mexico statute governs insurance producer
licensing and producer conduct?
A. NMSA Chapter 56
B. NMSA Chapter 57
C. NMSA Chapter 59A
D. NMSA Chapter 61
CORRECT ANSWER: C. NMSA Chapter 59A
Rationale: The New Mexico Insurance Code is codified at NMSA Chapter
59A, which contains the primary statutes governing insurance regulation,
producer licensing, and unfair trade practices.
Question 5: What is the passing score required on the New Mexico
Life, Accident and Health or Sickness Producer examination?
A. 60%
B. 65%
C. 70%
,D. 75%
CORRECT ANSWER: C. 70%
Rationale: The New Mexico Office of Superintendent of Insurance requires
a minimum passing score of 70% on the licensing examination for life and
health lines of authority.
Question 6: How many attempts may a candidate make to pass a
New Mexico insurance producer examination before being subject
to a waiting period?
A. Two attempts
B. Three attempts
C. Four attempts
D. Unlimited attempts
CORRECT ANSWER: C. Four attempts
Rationale: Under NMSA 59A-11-6(E), a candidate may sit for a line-of-
authority examination up to four times in a twelve-month period. After the
fourth unsuccessful attempt, a six-month waiting period applies.
Question 7: Which of the following is a characteristic of the
insurance contract that means the insurer drafts the terms and the
insured has little bargaining power?
A. Unilateral contract
B. Conditional contract
C. Contract of adhesion
D. Aleatory contract
CORRECT ANSWER: C. Contract of adhesion
Rationale: An insurance contract is a contract of adhesion because the
insurer drafts the policy terms and the applicant must either accept or
reject them without negotiation.
, Question 8: What is the principle that requires the insured to be
restored to the same financial position after a loss as before the
loss, without profiting from the loss?
A. Utmost good faith
B. Indemnity
C. Subrogation
D. Insurable interest
CORRECT ANSWER: B. Indemnity
Rationale: The principle of indemnity provides that the insured should be
compensated for a covered loss but should not profit from it, maintaining
financial fairness.
Question 9: Which term describes a condition that increases the
likelihood or severity of a loss?
A. Peril
B. Hazard
C. Risk
D. Exposure
CORRECT ANSWER: B. Hazard
Rationale: A hazard is a condition that increases the chance of a loss
occurring or increases the severity of a loss if it occurs, such as poor
housekeeping or defective wiring.
Question 10: Which method of handling risk involves transferring
the risk to an insurance company?
A. Avoidance
B. Retention
C. Reduction
D. Transfer
Health Insurance Producer License Exam Study Guide & Practice Questions | NM
OSI & PSI Insurance Licensing Exam Prep, Life Insurance, Accident & Health or
Sickness Insurance, New Mexico Insurance Laws & Regulations, Producer
Licensing, Ethics, Unfair Trade Practices, Insurance Contracts, Life Insurance
Policies, Term & Whole Life, Universal Life, Annuities, Policy Provisions & Riders,
Health Insurance, Disability Income, Medical Expense Plans, Managed Care,
Medicare, Medicaid, Long-Term Care, Group Insurance, Underwriting, Claims,
Replacement, Consumer Protection & Detailed Rationales
Question 1: In New Mexico, which state agency is responsible for
licensing and regulating life and health insurance producers?
A. New Mexico Public Regulation Commission
B. New Mexico Office of Superintendent of Insurance
C. New Mexico Department of Finance and Administration
D. New Mexico Consumer Protection Division
CORRECT ANSWER: B. New Mexico Office of Superintendent of
Insurance
Rationale: The New Mexico Office of Superintendent of Insurance (OSI) is
the state agency that regulates insurance producers and insurers, handling
licensing, enforcement, and consumer protection under the New Mexico
Insurance Code.
Question 2: Under New Mexico Administrative Code, what is the
minimum age requirement for an individual applying for a resident
insurance producer license?
A. 16 years of age
B. 18 years of age
C. 21 years of age
D. 25 years of age
CORRECT ANSWER: B. 18 years of age
Rationale: The New Mexico Administrative Code § 13.4.3.10 establishes
that an applicant for an individual insurance producer license must be at
least 18 years of age.
,Question 3: Which line of authority under New Mexico law includes
coverage for sickness, bodily injury, or accidental death and may
include benefits for disability income?
A. Casualty insurance
B. Property insurance
C. Accident and health or sickness insurance
D. Life insurance
CORRECT ANSWER: C. Accident and health or sickness insurance
Rationale: Per N.M. Admin. Code § 13.4.3.9, accident and health or sickness
insurance includes coverage for sickness, bodily injury, or accidental death
and may include disability income benefits.
Question 4: Which New Mexico statute governs insurance producer
licensing and producer conduct?
A. NMSA Chapter 56
B. NMSA Chapter 57
C. NMSA Chapter 59A
D. NMSA Chapter 61
CORRECT ANSWER: C. NMSA Chapter 59A
Rationale: The New Mexico Insurance Code is codified at NMSA Chapter
59A, which contains the primary statutes governing insurance regulation,
producer licensing, and unfair trade practices.
Question 5: What is the passing score required on the New Mexico
Life, Accident and Health or Sickness Producer examination?
A. 60%
B. 65%
C. 70%
,D. 75%
CORRECT ANSWER: C. 70%
Rationale: The New Mexico Office of Superintendent of Insurance requires
a minimum passing score of 70% on the licensing examination for life and
health lines of authority.
Question 6: How many attempts may a candidate make to pass a
New Mexico insurance producer examination before being subject
to a waiting period?
A. Two attempts
B. Three attempts
C. Four attempts
D. Unlimited attempts
CORRECT ANSWER: C. Four attempts
Rationale: Under NMSA 59A-11-6(E), a candidate may sit for a line-of-
authority examination up to four times in a twelve-month period. After the
fourth unsuccessful attempt, a six-month waiting period applies.
Question 7: Which of the following is a characteristic of the
insurance contract that means the insurer drafts the terms and the
insured has little bargaining power?
A. Unilateral contract
B. Conditional contract
C. Contract of adhesion
D. Aleatory contract
CORRECT ANSWER: C. Contract of adhesion
Rationale: An insurance contract is a contract of adhesion because the
insurer drafts the policy terms and the applicant must either accept or
reject them without negotiation.
, Question 8: What is the principle that requires the insured to be
restored to the same financial position after a loss as before the
loss, without profiting from the loss?
A. Utmost good faith
B. Indemnity
C. Subrogation
D. Insurable interest
CORRECT ANSWER: B. Indemnity
Rationale: The principle of indemnity provides that the insured should be
compensated for a covered loss but should not profit from it, maintaining
financial fairness.
Question 9: Which term describes a condition that increases the
likelihood or severity of a loss?
A. Peril
B. Hazard
C. Risk
D. Exposure
CORRECT ANSWER: B. Hazard
Rationale: A hazard is a condition that increases the chance of a loss
occurring or increases the severity of a loss if it occurs, such as poor
housekeeping or defective wiring.
Question 10: Which method of handling risk involves transferring
the risk to an insurance company?
A. Avoidance
B. Retention
C. Reduction
D. Transfer
