New Mexico property and casualty practice exam
Free property and casualty practice for the New Mexico producer exam: 367 general questions plus 11 New Mexico state law questions, each with an explanation.
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Studying for Life and Health? New Mexico life and health practice exam
Getting your New Mexico property and casualty license
New Mexico's property and casualty exams are given by PSI at a test center or online, and each costs $75. You need 70 percent to pass, and no pre-licensing course is required.
- Exam provider
- PSI, at a test center or online proctored
- Exam fee
- $75
- Passing score
- 70 percent
- Pre-licensing education
- Not required
- Retakes
- Up to 4 attempts per line of authority. After a fourth failed attempt, wait 6 months.
How to plan your retake
Retake rules by state - After you pass
- OSI must receive your full application and license fees within one year
- Continuing education
- 24 credit hours each 2-year compliance period, including at least 3 hours of ethics
Official links
- New Mexico Office of Superintendent of Insurance - official state insurance department
- PSI, New Mexico OSI Insurance Candidate Information Bulletin (Jun 2026) - exam provider information
Licensing facts checked on , against official sources. Fees and rules change, so confirm with the New Mexico Office of Superintendent of Insurance and your exam's candidate handbook before you register.
New Mexico state law questions
Every New Mexico question with its answer, explanation, and the law it comes from.
Licensing and CE
4 questions
1. How many continuing education credit hours must a New Mexico producer complete each compliance period under 13.4.7 NMAC?
- 15 hours, including at least 1 hour of ethics
- 24 hours, including at least 6 hours of ethics
- 30 hours, including at least 3 hours of ethics
- 24 hours, including at least 3 hours of ethics
Show answer
13.4.7.9(A) requires 24 credit hours per biennial period for most licensees, and at least 3 of them must cover ethics.
2. Under 13.4.7 NMAC, what happens to a New Mexico licensee's extra continuing education hours earned beyond the requirement?
- They cannot be carried over to the next compliance period
- Up to 6 hours carry over to the next period
- Up to 12 hours carry over to the next period
- All extra hours carry over for one period
Show answer
13.4.7.9(B) provides that credit hours may not be carried into the next compliance period.
3. How many of a New Mexico licensee's continuing education hours must be earned in a format allowing interaction with a live instructor?
- 1 hour
- 6 hours
- 3 hours
- 12 hours
Show answer
13.4.7.10(D)(2) requires at least 3 hours in a format that allows interaction with a live instructor.
4. Which New Mexico licensee is exempt from continuing education under 13.4.7.2(B)?
- A licensee who has held a license for 10 years
- A licensee continuously licensed for 25 or more years without a lapse over 90 days
- A licensee who sells only personal lines
- A licensee who works for one captive insurer
Show answer
The exemptions include licensees continuously licensed for 25 or more years without a lapse longer than 90 days.
Cancellation and Nonrenewal
5 questions
1. Under 13.8.4.9 NMAC, how far before the expiration date must a New Mexico insurer mail written notice that it will not renew a property or casualty policy?
- Not less than 10 days
- Not less than 30 days
- Not less than 15 days
- Not less than 60 days
Show answer
The nonrenewal notice must be mailed not less than 30 days before the policy expires.
2. For a New Mexico property or casualty policy in effect 60 or more days, a mid-term cancellation for a substantial change in the risk takes effect not less than how many days after mailing or delivery of notice?
- 10 days
- 15 days
- 45 days
- 30 days
Show answer
13.8.4.8.A requires cancellation to be effective not less than 30 days after the notice is mailed or delivered, and the notice must state the reason.
3. For a New Mexico property or casualty policy in effect 60 or more days, a mid-term cancellation for a listed reason such as fraud takes effect not less than how many days after notice?
- 15 days
- 5 days
- 30 days
- 60 days
Show answer
13.8.4.8.B and C allow cancellation for listed reasons with an effective date not less than 15 days after mailing or delivery.
4. Which is a listed reason for a mid-term cancellation of a New Mexico policy in effect 60 or more days?
- The insured filed a single claim in the past year
- The insured requested a higher deductible
- Revocation or suspension of the named insured's driver's license
- The insured moved to a new address in New Mexico
Show answer
Listed reasons include fraud or misrepresentation, acts that substantially increase the hazard, license revocation or suspension, and a fraudulent claim.
5. Under 13.8.4.11 NMAC, how many days before the effective date must a New Mexico insurer give notice of a change in policy form that restricts coverage or raises a deductible?
- Not less than 7 days
- Not less than 30 days
- Not less than 15 days
- Not less than 90 days
Show answer
A change in limitations, coverage restrictions, or deductibles requires notice not less than 30 days before the effective date.
Workers Compensation
2 questions
1. A New Mexico business must carry workers compensation coverage when it has how many employees?
- One or more
- Two or more
- Five or more
- Three or more
Show answer
The Workers' Compensation Administration states coverage is required for businesses with three or more employees and is voluntary for fewer than three.
2. Which New Mexico business must carry workers compensation regardless of how many employees it has?
- A business licensed by the Construction Industries Division
- A business that employs only family members
- A business with fewer than three part-time workers
- A business that hires only domestic workers
Show answer
CID-licensed businesses must carry coverage whatever their headcount, while coverage is voluntary for domestic workers and employers with fewer than three employees.
Key New Mexico terms
15 plain-English cards on New Mexico insurance law, from the New Mexico flashcard deck.
Licensing and CE
- New Mexico P&C CE requirement
- 24 hours each compliance period, including at least 3 hours of ethics (13.4.7 NMAC).
- New Mexico CE carryover
- Extra CE hours cannot be carried over to the next compliance period.
- New Mexico live instructor CE
- 3 hours must be earned in a format allowing interaction with a live instructor.
- New Mexico long-licensed CE exemption
- A licensee continuously licensed for 25 or more years without a lapse over 90 days is exempt from CE.
- New Mexico exam provider
- PSI gives the exam, at a test center or online proctored. Prelicensing is not required.
- New Mexico exam fee and passing score
- $75 per exam, with a 70 percent passing score.
- New Mexico retake limit
- Up to 4 attempts per line of authority, then a 6-month wait after a fourth failed attempt.
- New Mexico application deadline
- OSI must receive the full application and license fees within one year of passing.
Cancellation and Nonrenewal
- New Mexico nonrenewal notice
- Written notice that a property or casualty policy will not renew must be mailed not less than 30 days before expiration.
- New Mexico mid-term cancellation, changed risk
- For a policy in effect 60 or more days, cancellation for a substantial change in the risk takes effect not less than 30 days after notice.
- New Mexico mid-term cancellation, listed reason
- For a listed reason such as fraud, cancellation takes effect not less than 15 days after notice.
- New Mexico license revocation as cancellation reason
- Revocation or suspension of the named insured's driver's license is a listed reason for mid-term cancellation.
- New Mexico coverage change notice
- A change in policy form that restricts coverage or raises a deductible needs notice not less than 30 days before it takes effect.
Workers Compensation
- New Mexico workers comp requirement
- A business with three or more employees must carry workers compensation.
- New Mexico construction workers comp rule
- A business licensed by the Construction Industries Division must carry it regardless of the number of employees.
Keep studying
The general topics make up most of the exam.
New Mexico exam questions
Do I need a pre-licensing course for property and casualty in New Mexico?
No. OSI does not require a pre-licensing study course.Source: PSI, New Mexico OSI Insurance Candidate Information Bulletin (Jun 2026)
How many times can I take the New Mexico exam?
Up to four attempts per line of authority. After a fourth failed attempt there is a six-month waiting period.Source: PSI, New Mexico OSI Insurance Candidate Information Bulletin (Jun 2026)
How much does the New Mexico property and casualty exam cost?
$75. You need 70 percent correct to pass.Source: PSI, New Mexico OSI Insurance Candidate Information Bulletin (Jun 2026)
How much of the New Mexico property and casualty exam is state law?
State law is usually around 20 to 30 percent of a state's producer exam. Check the New Mexico candidate handbook from your testing provider for the exact content outline.
What does the New Mexico state law section cover?
Common areas include licensing and continuing education, auto liability minimums, cancellation and nonrenewal notice rules, and the guaranty fund. This page covers: Licensing and CE, Cancellation and Nonrenewal, Workers Compensation.
Where do these state questions come from?
Each state question is written from the state's statutes, regulations, or insurance department guidance, and the source is linked under the answer so you can read it yourself.
Do I still need the general questions?
Yes. Most of the exam is general property and casualty knowledge. The full exam option here mixes 367 general questions with the New Mexico state law questions.