Key Takeaways
- New Mexico requires 40 hours of recommended pre-licensing education (though not legally required)
- The exam consists of 100 total questions with a 2-hour time limit and 70% passing score required
- PSI administers all New Mexico insurance licensing examinations in-person or via remote proctoring
- All applications must be submitted electronically through NIPR (National Insurance Producer Registry)
- Resident applicants must complete fingerprint-based background checks through IDEMIA IdentoGo
New Mexico Property & Casualty Exam Overview
Welcome to OpenExamPrep's FREE New Mexico Property & Casualty Insurance exam prep guide. This comprehensive resource covers New Mexico-specific regulations, licensing requirements, and state insurance laws you need to know to pass your exam and begin your career as a licensed P&C producer.
About the New Mexico P&C Exam
The New Mexico Property & Casualty insurance examination is administered by PSI on behalf of the New Mexico Office of Superintendent of Insurance (OSI). The exam tests your knowledge of:
- New Mexico insurance law and regulations
- Property insurance principles and coverages
- Casualty insurance including auto and liability
- Policy provisions and endorsements
- Ethics and professional conduct
- Claims handling and consumer protection
Exam Structure
| Exam Component | Details |
|---|---|
| Testing Provider | PSI |
| Total Questions | 100 questions |
| Time Limit | 2 hours (120 minutes) |
| Passing Score | 70% or higher |
| Question Format | Multiple choice |
| Exam Delivery | In-person testing center or remote proctored online |
Important: The New Mexico P&C exam contains both national insurance principles and New Mexico state-specific content. You must demonstrate competency in both areas to pass.
Pre-Licensing Education Requirements
New Mexico does not legally require pre-licensing education for P&C insurance, but completing coursework is highly recommended for exam success.
Recommended Education
| Recommendation | Details |
|---|---|
| Total Hours | 40 hours (20 property + 20 casualty) |
| Provider | Any reputable insurance education provider |
| Format | Self-study, online, or in-person courses |
| Content | National P&C principles + NM state law |
Education Topics Covered
-
Property Insurance (20 hours recommended)
- Homeowners insurance principles
- Commercial property coverage
- Inland marine insurance
- Fire and allied lines
- Policy forms and endorsements
-
Casualty Insurance (20 hours recommended)
- Auto insurance (including NM 25/50/10 requirements)
- General liability principles
- Workers' compensation fundamentals
- Professional liability concepts
- Umbrella and excess liability
-
New Mexico Insurance Law (integrated)
- OSI regulatory structure
- State insurance code requirements
- Consumer protection statutes
- Licensing and ethical standards
Exam Tip: While New Mexico doesn't require pre-licensing education by law, most successful candidates spend 40-60 hours studying before attempting the exam to achieve the 70% passing score.
License Application Process
Step-by-Step Process
-
Complete Background Check (Resident Applicants Only)
- Schedule fingerprinting with IDEMIA IdentoGo
- Pay $44 fingerprint fee via Gemalto
- Background checked by NM Department of Public Safety and FBI
- OSI will not issue license until background results received
- Non-resident applicants exempt unless NM is Designated Home State
-
Complete Pre-Licensing Education (Recommended)
- Study 40 hours from approved provider
- Review New Mexico state insurance law
- Practice with exam simulations
- Although not legally required, highly recommended
-
Schedule Your Exam
- Register with PSI online or call (855) 560-3714
- Choose testing center or remote proctored option
- Pay $75 exam fee
- Schedule at your convenience based on availability
-
Take the Exam
- Arrive 30 minutes early (testing center) or complete tech check (remote)
- Bring two forms of identification
- Pass with 70%+ score
- Results submitted to NIPR within 48 hours
-
Submit License Application
- Apply through NIPR (www.NIPR.com)
- Pay $30 application fee + $5.60 transaction fee
- Provide exam passing confirmation
- Minimum age requirement: 18 years old
-
Get Appointed by an Insurer
- Must be appointed within 60 days of license issuance
- Insurance company appoints you to sell their products
- Appointment submitted through NIPR
-
Receive License
- License issued after application approval
- Valid for 2 years, renews by last day of birth month biennially
- Must complete CE requirements for renewal
Total Costs
| Item | Cost |
|---|---|
| Fingerprint/Background Check | $44.00 |
| Pre-License Education (optional) | $200 - $400 |
| Exam Fee | $75.00 |
| License Application Fee | $30.00 |
| NIPR Transaction Fee | $5.60 |
| TOTAL (without education) | $154.60 |
| TOTAL (with education) | $354.60 - $554.60 |
Veterans Benefit: Qualifying veterans may be eligible for exam cost reimbursement through VA Form 22-0803. Check with the VA for eligibility requirements.
What This Guide Covers
This FREE study guide focuses on New Mexico state-specific content:
Chapter 1: New Mexico P&C Regulation & Licensing
- New Mexico Office of Superintendent of Insurance (OSI) structure and authority
- Producer licensing requirements and background checks
- Continuing education requirements (24 hours/2 years including 3 ethics hours)
- Ethics and professional responsibilities
- Prohibited practices and disciplinary actions
Chapter 2: New Mexico Property Insurance
- Homeowners insurance requirements in New Mexico
- Commercial property coverage standards
- State-specific policy provisions and exclusions
- New Mexico catastrophe and wildfire considerations
- Claims handling requirements
Chapter 3: New Mexico Casualty & Auto Insurance
- New Mexico auto insurance minimum requirements (25/50/10 liability)
- Uninsured/underinsured motorist coverage requirements
- Liability insurance principles under NM law
- Workers' compensation regulations
- Commercial auto and umbrella policies
Chapter 4: New Mexico Ethics & Professional Conduct
- Fiduciary duties to clients and insurers
- Disclosure requirements under NM law
- Consumer protection statutes
- Professional standards and best practices
- Record-keeping requirements
Note: This guide covers ONLY New Mexico state law. You must also study national P&C insurance principles to fully prepare for the 100-question exam.
Exam Content Distribution
The New Mexico P&C exam emphasizes:
| Content Area | Emphasis | Study Focus |
|---|---|---|
| Policy Types & Coverage | High | Know ISO policy forms, HO-3, HO-6, DP-3, commercial property |
| P&C Terms & Concepts | High | Master insurance terminology and definitions |
| Policy Provisions | High | Understand limits, exclusions, conditions, and endorsements |
| New Mexico Insurance Law | Medium-High | State-specific regulations, OSI authority, licensing |
| Ethics & Conduct | Medium | Professional standards, prohibited practices, fiduciary duties |
| Claims Handling | Medium | Claims process, settlement procedures, bad faith standards |
| Auto Insurance | High | NM 25/50/10 minimums, UM/UIM coverage, SR-22 requirements |
New Mexico Office of Superintendent of Insurance Contact
Important Resources
| Resource | Details |
|---|---|
| Agency Name | New Mexico Office of Superintendent of Insurance (OSI) |
| Website | www.osi.state.nm.us |
| Main Phone | (855) 427-5674 (toll-free) |
| Local Phone | (505) 827-4601 |
| Agents.Licensing@osi.nm.gov | |
| Address | 1120 Paseo de Peralta<br/>Santa Fe, NM 87504 |
Testing Center Information
PSI
- Website: www.psiexams.com
- Phone: (855) 560-3714
- Online scheduling available 24/7
- Multiple testing centers throughout New Mexico
- Remote proctored exams available
License Lookup & Verification
NIPR License Lookup
- Website: https://sbs.naic.org/solar-external-lookup/
- Verify active licenses
- Check license status and lines of authority
How to Use This Guide
Study Strategy
- Complete Recommended Pre-License Education First (40 hours recommended)
- Schedule Fingerprinting (Resident applicants) - Allow 2-3 weeks for results
- Read Each Chapter Thoroughly - Focus on New Mexico-specific regulations
- Test Your Knowledge - Complete all quiz questions in this guide
- Review Key Takeaways - Create flashcards from bullet points
- Study National P&C Content - Use separate national study materials
- Take Practice Exams - Aim for consistent 85%+ scores before scheduling
- Schedule Exam with PSI - Book when you're ready
Recommended Study Timeline
| Week | Focus | Hours |
|---|---|---|
| Week 1-2 | Complete 40-hour pre-license course (if taking one) | 40 hours |
| Week 3 | Study national P&C insurance principles | 15 hours |
| Week 4 | Study New Mexico state law (this guide) | 12 hours |
| Week 5 | Practice exams and review weak areas | 15 hours |
| Week 6 | Final review and exam | 5 hours |
| TOTAL | 87 hours |
Success Tip: New Mexico's exam has no attempt limits, but each attempt costs $75. Prepare thoroughly before your first attempt to avoid unnecessary retake fees.
Key New Mexico Insurance Facts to Memorize
Auto Insurance Minimums (Critical!)
New Mexico requires 25/50/10 liability coverage:
- $25,000 bodily injury per person
- $50,000 bodily injury per accident (two or more persons)
- $10,000 property damage per accident
Alternative Compliance: Instead of insurance, drivers may provide a $60,000 surety bond or cash deposit with the New Mexico State Treasurer.
Continuing Education Requirements
| Requirement | Details |
|---|---|
| Total Hours | 24 hours every 2 years |
| Ethics | 3 hours required |
| License Lines | Property, Casualty, Personal Lines, A&H, Life, Variable Products |
| Renewal Timing | By last day of birth month biennially |
| Submission | Through PSI SBS system |
2026 Update: New Mexico repealed a continuing education rule that would have required all producers selling excepted benefit plans to complete 2 hours of specialized training by April 1, 2026.
Background Check Requirements (Residents)
- All resident applicants must complete fingerprint-based background checks
- Processed through IDEMIA IdentoGo
- Checked by NM Department of Public Safety and FBI
- OSI does not issue licenses until background results received
- Cost: $44
- Non-residents exempt (unless NM is Designated Home State)
New Mexico Insurance Market Context
Why Property & Casualty Insurance Matters in New Mexico
New Mexico's unique characteristics create specific insurance considerations:
- Wildfire Risk - High-elevation forests and arid climate create significant wildfire exposure
- Hail and Wind - Severe thunderstorms cause property damage across the state
- Earthquake Exposure - While not California-level, seismic activity exists
- Rural Communities - Many areas lack nearby fire protection, affecting homeowners rates
- Tourism and Recreation - Ski resorts, national parks, and outdoor recreation create liability exposures
- Water Scarcity - Drought conditions affect property values and insurance availability
New Mexico Insurance Demographics
- Population: ~2.1 million (2025 estimate)
- Urban Centers: Albuquerque, Las Cruces, Santa Fe, Rio Rancho
- Rural Character: Many communities spread across 121,000 square miles
- Economic Sectors: Tourism, energy (oil/gas), government, agriculture, technology
- Insurance Market: Mix of national carriers and regional specialists
Next Steps
Ready to begin? Start with Chapter 1: New Mexico P&C Regulation & Licensing to learn about the Office of Superintendent of Insurance, licensing requirements, and professional responsibilities.
Good luck on your exam! 🎓
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