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New Mexico Life and Health Insurance Practice Exam — 100 Questions with Answers &
Rationales
Domain 1: New Mexico Insurance Regulations & Licensing (Questions 1–20)
Question 1: How often must an insurance producer in New Mexico renew their license?
A) Annually
B) Every 2 years
C) Every 3 years
D) Every 4 years
Correct Answer: B
Rationale: New Mexico law requires insurance producers to renew their license every two
years, based on their birth month .
Question 2: Within how many days must a New Mexico insurance producer report a change
of address to the Superintendent of Insurance?
A) 10 days
B) 20 days
C) 30 days
D) 60 days
Correct Answer: C
Rationale: New Mexico requires licensees to report a change of address to the
Superintendent of Insurance within 30 days .
Question 3: What is the required free-look period for a life insurance policy in New Mexico?
A) 7 days
B) 10 days
C) 20 days
D) 30 days
Correct Answer: B
Rationale: New Mexico requires a 10-day free-look period for life insurance policies,
allowing the policyowner to review the policy and return it for a full refund if dissatisfied .
Question 4: Under New Mexico law, what is the maximum penalty for a first-offense
violation of the Insurance Code by an agent?
, 2
A) $1,000
B) $2,500
C) $5,000
D) $10,000
Correct Answer: C
Rationale: New Mexico law provides for a maximum penalty of $5,000 for a first violation of
the Insurance Code by a licensed agent .
Question 5: What is the time limit for an insurer to pay a claim after receiving proof of loss in
New Mexico?
A) 15 days
B) 30 days
C) 45 days
D) 60 days
Correct Answer: B
Rationale: New Mexico law requires insurers to pay claims within 30 days after receiving
satisfactory proof of loss, unless the policy specifies a different period .
Question 6: According to New Mexico law, how often must an insurance agent renew their
license?
A) Annually
B) Every 2 years
C) Every 3 years
D) Every 4 years
Correct Answer: B
Rationale: New Mexico law requires license renewal every 2 years, based on the producer's
birth month .
Question 7: What is the required grace period for a health insurance policy in New Mexico
with annual premium payments?
A) 7 days
B) 10 days
C) 31 days
D) 60 days
, 3
Correct Answer: C
Rationale: New Mexico law mandates a minimum grace period of 31 days for health
insurance policies with annual premiums. Shorter periods apply to more frequent premium
payments (e.g., 7 days for weekly, 10 days for monthly) .
Question 8: Does New Mexico require pre-licensing education for Life & Health insurance
applicants?
A) Yes, 20 hours
B) Yes, 40 hours
C) No
D) Yes, but only for health insurance
Correct Answer: C
Rationale: New Mexico does not require pre-licensing education for Life & Health insurance
applicants. Candidates may self-study or take optional prep courses .
Question 9: What is the passing score required for the New Mexico Life & Health insurance
exam?
A) 60%
B) 65%
C) 70%
D) 75%
Correct Answer: C
Rationale: The New Mexico Life & Health insurance exam requires a passing score of 70% .
Question 10: Which entity regulates insurance in New Mexico?
A) New Mexico Department of Insurance
B) Office of Superintendent of Insurance (OSI)
C) New Mexico Insurance Commission
D) Federal Insurance Office
Correct Answer: B
Rationale: The Office of Superintendent of Insurance (OSI) is New Mexico's insurance
regulator. It handles licensing, enforcement, market conduct oversight, and consumer
protection under the New Mexico Insurance Code .
New Mexico Life and Health Insurance Practice Exam — 100 Questions with Answers &
Rationales
Domain 1: New Mexico Insurance Regulations & Licensing (Questions 1–20)
Question 1: How often must an insurance producer in New Mexico renew their license?
A) Annually
B) Every 2 years
C) Every 3 years
D) Every 4 years
Correct Answer: B
Rationale: New Mexico law requires insurance producers to renew their license every two
years, based on their birth month .
Question 2: Within how many days must a New Mexico insurance producer report a change
of address to the Superintendent of Insurance?
A) 10 days
B) 20 days
C) 30 days
D) 60 days
Correct Answer: C
Rationale: New Mexico requires licensees to report a change of address to the
Superintendent of Insurance within 30 days .
Question 3: What is the required free-look period for a life insurance policy in New Mexico?
A) 7 days
B) 10 days
C) 20 days
D) 30 days
Correct Answer: B
Rationale: New Mexico requires a 10-day free-look period for life insurance policies,
allowing the policyowner to review the policy and return it for a full refund if dissatisfied .
Question 4: Under New Mexico law, what is the maximum penalty for a first-offense
violation of the Insurance Code by an agent?
, 2
A) $1,000
B) $2,500
C) $5,000
D) $10,000
Correct Answer: C
Rationale: New Mexico law provides for a maximum penalty of $5,000 for a first violation of
the Insurance Code by a licensed agent .
Question 5: What is the time limit for an insurer to pay a claim after receiving proof of loss in
New Mexico?
A) 15 days
B) 30 days
C) 45 days
D) 60 days
Correct Answer: B
Rationale: New Mexico law requires insurers to pay claims within 30 days after receiving
satisfactory proof of loss, unless the policy specifies a different period .
Question 6: According to New Mexico law, how often must an insurance agent renew their
license?
A) Annually
B) Every 2 years
C) Every 3 years
D) Every 4 years
Correct Answer: B
Rationale: New Mexico law requires license renewal every 2 years, based on the producer's
birth month .
Question 7: What is the required grace period for a health insurance policy in New Mexico
with annual premium payments?
A) 7 days
B) 10 days
C) 31 days
D) 60 days
, 3
Correct Answer: C
Rationale: New Mexico law mandates a minimum grace period of 31 days for health
insurance policies with annual premiums. Shorter periods apply to more frequent premium
payments (e.g., 7 days for weekly, 10 days for monthly) .
Question 8: Does New Mexico require pre-licensing education for Life & Health insurance
applicants?
A) Yes, 20 hours
B) Yes, 40 hours
C) No
D) Yes, but only for health insurance
Correct Answer: C
Rationale: New Mexico does not require pre-licensing education for Life & Health insurance
applicants. Candidates may self-study or take optional prep courses .
Question 9: What is the passing score required for the New Mexico Life & Health insurance
exam?
A) 60%
B) 65%
C) 70%
D) 75%
Correct Answer: C
Rationale: The New Mexico Life & Health insurance exam requires a passing score of 70% .
Question 10: Which entity regulates insurance in New Mexico?
A) New Mexico Department of Insurance
B) Office of Superintendent of Insurance (OSI)
C) New Mexico Insurance Commission
D) Federal Insurance Office
Correct Answer: B
Rationale: The Office of Superintendent of Insurance (OSI) is New Mexico's insurance
regulator. It handles licensing, enforcement, market conduct oversight, and consumer
protection under the New Mexico Insurance Code .
