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NEW MEXICO HEALTH AND LIFE
INSURANCE EXAM 2026| CERTIFIED
QUESTIONS AND VERIFIED SOLUTIONS
(A+)
The United States government as insurer - correct-answer -Provides insurance
benefits such as Social Security military life insurance benefits federal Employee
compensation benefits and various retirement benefit programs
Private versus government insurers - correct-answer -
Authorized (admitted)versus unauthorized (nonadmitted)insurers - correct-
answer -And insurance company must receive authority from the state insurance
department to transact business within a state. An authorized/admitted insurer
means and ensure that is entitled to transact with in the state haven't complied
with the law and satisfying all conditions to transacting insurance
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Insurer's Domicile - correct-answer -Domestic insurers-a company is a domestic
insurer in the state in which it is incorporated
Foreign insurer-A company who is licensed to conduct business in state other
than the one in Which it is Inc.
Alien insurer-Companies Inc. in a country other than the United States DC or
territory
Financial Status (Independent Rating Services) - correct-answer -AM Best
Fitch
Standard and Poor's
Moody's
Weiss
Six types of insurance - correct-answer -Property insurance
Casualty insurance
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Annuity
Accident and health or sickness
Variable life and variable annuity products
Credit insurance
Marketing (Distribution) Systems - correct-answer -4 basic distribution systems
used to market insurance: ▬Captive: -Insurer contracts with independ agents to
represent & sell for only that insurance comp, Typically paid on a commission
basis. - Insurance company owns & control all accounts, policy records, &
renewals. ▬Direct writer: -Direct writing agent is an employee of the comp, may
be paid a salary, commission or both. - Insurance comp owns & controls all
accounts, policy records, and renewals. ▬Direct response: -This system does not
use agents, but instead solicits through direct mail or telemarketing. -Insurance
comp owns & controls all accounts, policy records, and renewals. ▬ Independent
Agent: -Independent contractor who contracts with several different companies
to represent & sell insurance for those companies - receives only commission.
Agent owns & controls the accounts, policy records, and renewals.
NEW MEXICO HEALTH AND LIFE
INSURANCE EXAM 2026| CERTIFIED
QUESTIONS AND VERIFIED SOLUTIONS
(A+)
The United States government as insurer - correct-answer -Provides insurance
benefits such as Social Security military life insurance benefits federal Employee
compensation benefits and various retirement benefit programs
Private versus government insurers - correct-answer -
Authorized (admitted)versus unauthorized (nonadmitted)insurers - correct-
answer -And insurance company must receive authority from the state insurance
department to transact business within a state. An authorized/admitted insurer
means and ensure that is entitled to transact with in the state haven't complied
with the law and satisfying all conditions to transacting insurance
,2|Page
Insurer's Domicile - correct-answer -Domestic insurers-a company is a domestic
insurer in the state in which it is incorporated
Foreign insurer-A company who is licensed to conduct business in state other
than the one in Which it is Inc.
Alien insurer-Companies Inc. in a country other than the United States DC or
territory
Financial Status (Independent Rating Services) - correct-answer -AM Best
Fitch
Standard and Poor's
Moody's
Weiss
Six types of insurance - correct-answer -Property insurance
Casualty insurance
, 3|Page
Annuity
Accident and health or sickness
Variable life and variable annuity products
Credit insurance
Marketing (Distribution) Systems - correct-answer -4 basic distribution systems
used to market insurance: ▬Captive: -Insurer contracts with independ agents to
represent & sell for only that insurance comp, Typically paid on a commission
basis. - Insurance company owns & control all accounts, policy records, &
renewals. ▬Direct writer: -Direct writing agent is an employee of the comp, may
be paid a salary, commission or both. - Insurance comp owns & controls all
accounts, policy records, and renewals. ▬Direct response: -This system does not
use agents, but instead solicits through direct mail or telemarketing. -Insurance
comp owns & controls all accounts, policy records, and renewals. ▬ Independent
Agent: -Independent contractor who contracts with several different companies
to represent & sell insurance for those companies - receives only commission.
Agent owns & controls the accounts, policy records, and renewals.
