New Mexico Property & Casualty Insurance License Exam Overview
The New Mexico Property & Casualty Insurance License Exam is administered by PSI on behalf of the New Mexico Office of Superintendent of Insurance (OSI). New Mexico's diverse landscape—from desert to mountains—creates unique insurance needs, including wildfire protection and flash flood coverage.
Passing this exam qualifies you to sell property insurance, auto insurance, liability coverage, and related products throughout New Mexico—a state with over 2 million residents, growing urban centers, and distinctive weather risks that create consistent P&C insurance demand.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | 150 multiple-choice |
| Scored Questions | 150 |
| Time Limit | 2 hours |
| Passing Score | 70% (105 correct answers) |
| Testing Vendor | PSI |
| Exam Fee | $75 |
| Pre-licensing Education | Not required (recommended) |
Why Get P&C Licensed in New Mexico?
- Growing population — Albuquerque and Santa Fe expanding
- Unique risks — Wildfire and flash flood create specialized needs
- Lower competition — Less saturated than larger state markets
- Tourism economy — Businesses need commercial coverage
- Retirement destination — Affluent retirees need homeowners coverage
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Key Topics Covered on the Exam
1. Property Insurance (30%)
Homeowners Insurance:
- HO-2, HO-3, HO-4, HO-5, HO-6, HO-8 policy forms
- Coverage A (Dwelling), B (Other Structures), C (Personal Property)
- Coverage D (Loss of Use), E (Personal Liability)
- Dwelling fire policies
New Mexico-Specific Property Topics:
- Wildfire coverage (major NM exposure)
- Flash flood coverage considerations
- Adobe and historic home coverage
- Wind and dust storm damage
- New Mexico FAIR Plan (residual market)
Commercial Property:
- Building and personal property coverage forms
- Business income coverage
- Equipment breakdown
- Inland marine coverage
2. Liability Insurance (30%)
Personal Liability:
- Homeowners liability (Coverage E)
- Personal umbrella policies
- Medical payments coverage
Commercial Liability:
- Commercial General Liability (CGL)
- Products and completed operations
- Professional liability (E&O)
- Workers compensation requirements
New Mexico Workers Compensation:
- Required for employers with 3 or more employees
- Mutual Domestic Insurers available
- Private market competitive
- Self-insurance options for qualified employers
3. Auto Insurance (25%)
New Mexico Auto Insurance Requirements:
| Coverage | Minimum Limit |
|---|---|
| Bodily Injury (per person) | $25,000 |
| Bodily Injury (per accident) | $50,000 |
| Property Damage | $10,000 |
Additional Auto Topics:
- Personal Auto Policy (PAP) coverage parts
- New Mexico Mandatory Financial Responsibility Act
- Uninsured motorist coverage (required)
- Underinsured motorist coverage
- SR-22 requirements
- Commercial auto insurance
4. New Mexico Insurance Code and Regulations (10%)
NMSA Chapter 59A Key Provisions:
- Producer licensing requirements
- Unfair trade practices
- Unfair claims settlement practices
- Policy cancellation and nonrenewal rules
- Advertising guidelines
Licensing Requirements:
- Pre-licensing education: 40 hours required
- Continuing education: 24 hours every 2 years
- Ethics requirement: Included in CE
- Background check required
5. Ethics and Professional Conduct (5%)
- Fiduciary duties to insureds
- Premium handling requirements
- Claims reporting obligations
- Privacy and confidentiality
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1-2 | Property insurance fundamentals | 12-14 |
| Week 2-3 | Liability insurance | 12-14 |
| Week 3-4 | Auto insurance and NM requirements | 12-14 |
| Week 4-5 | New Mexico regulations (NMSA Chapter 59A) | 8-10 |
| Week 5-6 | Practice exams and review | 12-14 |
Total recommended study time: 55-65 hours
Free Practice Questions Available
Test your knowledge with hundreds of free practice questions designed specifically for the New Mexico P&C exam.
New Mexico-Specific Exam Tips
1. Know New Mexico Auto Minimums
New Mexico requires 25/50/10 liability coverage:
- $25,000 per person bodily injury
- $50,000 per accident bodily injury
- $10,000 property damage
Note: New Mexico has lower property damage minimums than many states.
2. Master Wildfire Coverage
New Mexico wildfire risk is significant:
- Mountain communities — Most vulnerable areas
- Defensible space — Mitigation requirements
- Brush clearing — May affect rates
- Evacuation coverage — Additional living expenses
3. Understand Flash Flood Risks
Desert flooding considerations:
- Flash floods occur in arroyos and low areas
- Standard flood exclusion in homeowners
- NFIP flood insurance separate purchase
- Monsoon season claims
4. Key Numbers to Remember
| Topic | New Mexico Requirement |
|---|---|
| Auto minimums | 25/50/10 |
| WC threshold | 3+ employees |
| Pre-licensing | 40 hours |
| CE requirement | 24 hours/2 years |
| Passing score | 70% |
Common Mistakes to Avoid
- Confusing property damage minimum — NM is 25/50/10, not 25/50/25
- Skipping wildfire coverage — Major NM risk
- Ignoring flash flood exclusions — Separate NFIP coverage needed
- Not knowing WC threshold — 3 or more employees in NM
- Not practicing timed exams — 2 hours for 150 questions
- Cramming last minute — Spread study over 5-6 weeks
After Passing Your Exam
- Apply for license through New Mexico OSI
- Complete background check — Required for all applicants
- Pay license fee — Resident producer license fee
- Affiliate with insurer — Get appointed by carrier
- Maintain CE compliance — 24 hours every 2 years
- Begin selling — Your license is valid for 2 years
2026 New Mexico Updates
For 2026, be aware of:
- Wildfire coverage rate adjustments
- Flash flood zone updates
- Auto insurance rate changes
- Enhanced consumer protection regulations
Start Your New Mexico P&C Insurance Career Today
The New Mexico P&C license opens doors to a growing Southwest market with unique coverage needs. With proper preparation, you can pass the exam on your first attempt.
Our free study materials include:
- Complete topic coverage
- Practice questions with explanations
- New Mexico-specific regulations (NMSA Chapter 59A)
- Study guides and summaries
- AI-powered study assistance
Do not pay for expensive prep courses when everything you need is available FREE.