New Mexico Life & Health Insurance License Exam Overview
The New Mexico Life & Health Insurance License Exam is your gateway to selling life insurance, health insurance, annuities, and related products in the Land of Enchantment. Administered by PSI Services on behalf of the New Mexico Office of Superintendent of Insurance (OSI), this exam ensures you have the knowledge to serve New Mexico consumers ethically and competently.
New Mexico offers unique opportunities for insurance professionals with its state-based health exchange (beWellnm), growing Albuquerque metropolitan area, diverse population with varied insurance needs, and strong Medicaid program. The state's expanding healthcare sector creates excellent career opportunities.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | 150 multiple-choice |
| Time Limit | 2 hours 30 minutes |
| Passing Score | 70% (105 correct answers) |
| Testing Vendor | PSI Services |
| Exam Fee | Varies by exam type |
| Pre-licensing Education | Not required (recommended) |
| Retake Policy | 4 attempts per year; 6-month wait after 4th failure |
Individual Line Exams:
- Life Insurance: 100 questions, 2 hours, 70% passing
- Health Insurance: 100 questions, 2 hours, 70% passing
Why Get Licensed in New Mexico?
- State-based exchange - beWellnm marketplace creates opportunities for health insurance agents
- Growing Albuquerque - Expanding healthcare and technology sectors
- Diverse population - Varied insurance needs across rural and urban communities
- Centennial Care Medicaid - Strong managed care program
- No pre-licensing required - Faster path to licensure
- Southwest regional market - Access to neighboring state markets
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Key Topics Covered on the Exam
1. Life Insurance Fundamentals (30-35%)
Types of Life Insurance:
- Term Life (level, decreasing, renewable, convertible)
- Whole Life (ordinary, limited pay, single premium)
- Universal Life (flexible premiums, adjustable death benefit)
- Variable Life (securities-based, requires additional licensing)
New Mexico Life Insurance Policy Provisions:
| Provision | NM Requirement |
|---|---|
| Grace Period | 30 days |
| Incontestability Period | 2 years from policy issue |
| Suicide Clause | 2 years |
| Free Look Period | 10 days (30 days for seniors) |
| Reinstatement | 3 years |
| Misstatement of Age | Adjusted benefits, not voided |
Key Life Insurance Concepts:
- Beneficiary designations (primary, contingent, irrevocable)
- Settlement options (lump sum, interest only, fixed period, life income)
- Policy loans and cash value
- Nonforfeiture options (cash surrender, reduced paid-up, extended term)
- Dividend options for participating policies
2. Health Insurance Fundamentals (30-35%)
New Mexico Health Insurance Landscape:
New Mexico operates beWellnm, a state-based health insurance marketplace established under the Affordable Care Act. As a licensed agent, you'll help clients navigate:
- Open Enrollment Period - November 1 through January 15 annually
- Metal Tiers - Bronze, Silver, Gold, Platinum plans
- Turquoise Plans - Exclusive to beWellnm marketplace
- Premium Tax Credits - Based on income and family size
- GetInsured Platform - New enrollment platform starting 2026
Four Insurers for 2026:
- Blue Cross Blue Shield of New Mexico
- Molina Healthcare
- Presbyterian Health Plan
- Western Sky Community Care
Centennial Care (New Mexico Medicaid):
- Adults under 65 with household income up to 138% of poverty
- Managed by Blue Cross Community Centennial, Presbyterian Health Plan, and Western Sky Community Care
- Covers preventive services, hospital care, mental health, long-term care, prescriptions
- Year-round enrollment available
State Premium Assistance Programs:
- First month premium coverage for Medicaid-to-Marketplace transitions
- State subsidies may extend federal subsidy expiration (2026 legislative session)
- Turquoise plans with enhanced benefits
Major Medical Coverage Topics:
- Deductibles, copays, and coinsurance
- Out-of-pocket maximums
- Network types (HMO, PPO, EPO, POS)
- Essential health benefits under ACA
- Pre-existing condition protections
Supplemental Health Products:
- Disability income insurance (short-term and long-term)
- Long-term care insurance
- Medicare supplements (Medigap)
- Dental and vision coverage
3. Annuities (15-20%)
- Fixed vs. variable annuities
- Immediate vs. deferred annuities
- Accumulation and annuitization phases
- Surrender charges and free withdrawal provisions
- Death benefit provisions
- 1035 exchanges
New Mexico Annuity Requirements:
- Suitability requirements strictly enforced
- Free look period applies to annuity contracts
- Proper disclosure required
4. New Mexico Insurance Code and Regulations (15-20%)
Key New Mexico Laws (NM Statutes Chapter 59A):
- Chapter 59A-2 (Office of Superintendent of Insurance)
- Chapter 59A-12 (Life Insurance)
- Chapter 59A-22 (Health Insurance)
- Unfair trade practices and claims settlement
- Replacement regulations
- Advertising guidelines
Licensing Requirements:
- Pre-licensing education: Not required (but highly recommended)
- Fingerprint-based background check required BEFORE application
- Pass state licensing exam through PSI
- Apply through OSI (Form 210 before exam)
- License renewal every 2 years (on birth month)
Producer Responsibilities:
- Fiduciary duty to clients
- Needs analysis and suitability
- Disclosure requirements
- Premium handling requirements
- Reporting misconduct
5. Ethics and Market Conduct (10-15%)
- Fiduciary responsibilities
- Misrepresentation and fraud
- Rebating and inducements (prohibited)
- Twisting and churning
- Unfair discrimination
- Privacy and confidentiality
Free Practice Questions Available
Test your knowledge with hundreds of free practice questions designed specifically for the New Mexico Life & Health exam.
Pre-Licensing Education (Optional but Recommended)
New Mexico does not require pre-licensing education to sit for the insurance exam. However, due to the difficulty of the exam, completing a prep course is highly recommended:
| Consideration | Details |
|---|---|
| Required by State | No |
| Recommended | Yes - significantly improves pass rates |
| Self-Study | Permitted with proper materials |
| Course Options | Online or classroom available |
Benefits of Taking a Prep Course:
- Structured learning path
- Practice exams simulating real test conditions
- Expert explanations of complex topics
- Higher first-time pass rates
Continuing Education Requirements
After licensure, maintain your New Mexico insurance license with:
| Requirement | Details |
|---|---|
| CE Hours | 24 hours every 2-year license term |
| Ethics | 3 hours required |
| Classroom | Minimum 3 hours must be classroom or equivalent |
| Reporting | Providers report within 10 days |
| Renewal | Last day of birth month, biennially |
Special Training Requirements:
- Long-Term Care: 8-hour initial course, then 4 hours ongoing
- Flood Insurance: 3-hour NFIP course before selling flood insurance
CE Exemptions:
- Limited license holders
- 25+ years continuously licensed with no lapse over 90 days (Grandfather Exemption)
- License held only for renewal fee residuals
- Non-resident producers meeting home state CE requirements
Penalty for Non-Compliance: $50 fee plus new background check and additional late renewal penalties.
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1-2 | Life insurance products and provisions | 15-20 |
| Week 2-3 | Health insurance and beWellnm | 15-20 |
| Week 3-4 | Annuities and retirement products | 10-12 |
| Week 4-5 | NM regulations and ethics | 10-12 |
| Week 5-6 | Practice exams and review | 15-20 |
Total recommended study time: 65-85 hours
New Mexico-Specific Exam Tips
1. Know Your NM Laws
The exam heavily tests New Mexico-specific regulations:
- NM Statutes Chapter 59A - New Mexico insurance code
- Grace periods - 30 days for life insurance
- beWellnm exchange - State marketplace rules
- OSI authority - Regulatory powers and enforcement
2. Master the Numbers
| Topic | Number to Remember |
|---|---|
| Grace period | 30 days |
| Free look period | 10 days (30 for seniors) |
| Incontestability | 2 years |
| Pre-licensing education | Not required |
| CE requirement | 24 hours/2 years |
| Passing score | 70% |
| Exam time | 2.5 hours |
| Exam retake limit | 4 per year |
3. Understand beWellnm
The state health insurance marketplace is critical exam content:
- Open Enrollment: November 1 - January 15
- Special Enrollment Periods for qualifying life events
- Turquoise plans exclusive to marketplace
- Four participating insurers for 2026
- Premium tax credits based on income
- New GetInsured enrollment platform
Exam Day Checklist
Before the Exam:
- Submit Form 210 to OSI before scheduling exam
- Complete fingerprint-based background check
- Schedule at psiexams.com or call (855) 560-3714
- Pay exam fee
Day of Exam:
- Bring valid government-issued photo ID
- Arrive 30 minutes early for check-in
- Report to testing center or complete online proctored exam
Testing Options:
- In-Person: Multiple PSI testing centers across New Mexico
- Online: Remote proctored exam available from home
Important Retake Policy: You have 4 attempts to pass within one year. After the fourth unsuccessful attempt, you must wait 6 months before retaking.
Common Mistakes to Avoid
- Skipping preparation - No pre-licensing doesn't mean no studying needed
- Underestimating NM regulations - State-specific content is heavily tested
- Ignoring health insurance - Equal weight to life insurance on the exam
- Not knowing beWellnm - State exchange is crucial content
- Forgetting fingerprinting - Must be completed BEFORE application
- Cramming - Spread study over 4-6 weeks for better retention
After Passing Your Exam
- Verify background check is complete
- Apply for license - OSI processes within application period
- Pay license fee to OSI
- Affiliate with insurance company or agency
- Begin selling - Your license is valid for 2 years
New Mexico Office of Superintendent of Insurance Contact:
- Address: 1120 Paseo de Peralta, Santa Fe, NM 87501
- Phone: (505) 827-4601
- Email: Agents.Licensing@osi.nm.gov
- Website: osi.state.nm.us
2026 New Mexico Updates
Key Changes for 2026:
- New Enrollment Platform: beWellnm transitioned from Optum to GetInsured platform
- Federal Changes: New Medicaid eligibility and work requirements at federal level
- State Subsidies: October special legislative session provided 6-month temporary fix for federal subsidy expiration
- 2026 Legislative Session: Expected to address permanent subsidy extensions
- Medicaid Transitions: State covers first month premium for those transitioning from Centennial Care to marketplace
Start Your New Mexico Insurance Career Today
The New Mexico Life & Health license opens doors to the Land of Enchantment's growing insurance market. With a state-based exchange, expanding healthcare sector, and no pre-licensing requirements, New Mexico offers excellent opportunities for insurance professionals.
Our free study materials include:
- Complete topic coverage aligned to exam content
- Practice questions with detailed explanations
- New Mexico-specific regulations and requirements
- Study guides and summaries
- AI-powered study assistance
Don't pay for expensive prep courses when everything you need is available FREE.