New Mexico Life Insurance, Series 18-25 (Life Insurance Producer)
The New Mexico life insurance exam.
The New Mexico life insurance exam is 100 scored questions, in 120 minutes, passing at 70%, $75 per attempt, administered by PSI Exams. We sell study materials and practice exams for it, written from the official New Mexico outline. The first questions are free, and the full License Pass is $149, yours until you pass. Below are the licensing steps, exactly what the exam covers, and free practice questions written to this state's outline.
At a glance
| Exam | New Mexico Life Insurance, Series 18-25 (Life Insurance Producer) |
| Scored questions | 100 |
| Pretest questions | varies |
| Time limit | 120 minutes |
| Passing score | 70% correct |
| Exam fee | $75 |
| Testing vendor | PSI Exams |
| Retake rules | No stated wait between early attempts, but a maximum of 4 attempts per line of authority; after the 4th unsuccessful attempt, a six-month waiting period applies (NMSA 59A-11-6(E)). Exam fee valid one year, non-refundable |
| Prelicensing education | not required for the life line |
Verified against official PSI Exams materials, Content outline effective 7/1/2026 (linked from PSI NM Candidate Information Bulletin dated 6/4/2026: https://test-takers.psiexams.com/api/content/bulletin/11909). Specs change; confirm when you register.
How to get your New Mexico life insurance license
- 1
Meet the basics
Be 18 or older and able to pass the background screening. New Mexico handles licensing through the NIPR system like most states.
- 2
Study the exam outline
New Mexico does not require prelicensing education for the life line, so your preparation is the whole game. Study the official outline below and drill practice questions until every section holds.
- 3
Book the exam with PSI Exams
Register at PSI Exams, pick a test center or online proctoring where offered, and pay the $75 exam fee.
- 4
Pass the exam
Walk in knowing the format, 100 scored questions in 120 minutes, passing at 70%. About 62% of first-time life exam takers pass nationally (NAIC, latest published data).
- 5
Apply for the license and get appointed
Submit the license application (fingerprints where required), then get appointed with carriers so you can write business.
What the New Mexico exam covers
From the official exam outline, each section's share of the exam and how many of the 100 scored questions it earns.
| Section | Weight | Questions |
|---|---|---|
| Insurance Regulation | 10% | 10 questions |
| Federal Laws and Regulations | 3% | 3 questions |
| General Insurance Concepts | 10% | 10 questions |
| Life Insurance Basics | 21% | 21 questions |
| Types of Life Insurance Policies | 19% | 19 questions |
| Life Insurance Policy Provisions, Options, and Riders | 21% | 21 questions |
| Annuities | 12% | 12 questions |
| Federal Tax Considerations for Life Insurance | 4% | 4 questions |
Free New Mexico practice questions
Original questions written to the New Mexico outline, the same bank our students drill. Tap a question to check the answer.
Question 1How does a New Mexico resident producer license differ from a nonresident producer license?
- A. A resident license is based on the producer's home state being New Mexico, while a nonresident license is for producers whose home state is elsewhere
- B. A resident license never requires continuing education, while a nonresident license does
- C. A resident license allows only life sales, while a nonresident license allows all lines
- D. A resident license is issued by the federal government, while a nonresident license is issued by the state
Show the answer
Answer: A
The key distinction is home state: residents have New Mexico as their home state, while nonresidents are licensed in another home state and seek to do business in New Mexico. Continuing education rules generally apply to residents, and nonresidents often satisfy CE through their home state. Both license types can cover the same lines of authority. Insurance producer licenses are issued by states, not the federal government.
NMSA 59A-11 (resident vs. nonresident licensing)
Question 2Producer Dana submitted a license application that contained a false statement about her past employment; which disciplinary outcome is most appropriate?
- A. Denial, suspension, or revocation of the license for providing false information
- B. No action because the statement was only about employment
- C. A mandatory refund of all commissions to clients
- D. Immediate transfer of her book of business to the state
Show the answer
Answer: A
Providing false information on a license application is a recognized ground for the Superintendent to deny, suspend, or revoke the license. That is the correct disciplinary response. Saying no action applies is wrong because material misrepresentation on an application is a violation regardless of subject. Refunding commissions is a possible restitution measure but is not the standard remedy for application fraud. The state does not take over a producer's book of business.
NMSA 59A-11 grounds for license denial or discipline (concept)
Question 3Which action is within the Superintendent's rulemaking authority under the Insurance Code?
- A. Adopting regulations to carry out and implement the provisions of the Insurance Code
- B. Creating new criminal statutes without the legislature
- C. Amending the state constitution
- D. Setting the state's overall budget
Show the answer
Answer: A
The Superintendent may issue regulations that put the statutes into practice, so long as they stay within the authority the legislature gave. Only the legislature can create statutes and criminal law; a regulator cannot make new crimes on its own. Amending the constitution is a separate constitutional process. The state budget is set by the legislature and governor, not the insurance regulator.
New Mexico Insurance Code, Superintendent's rulemaking authority
Question 4Which practice is prohibited under New Mexico's unfair claims settlement practices rules?
- A. Paying a valid claim promptly after receiving proof of loss
- B. Failing to acknowledge and act reasonably promptly on communications about claims
- C. Requesting proof of loss before paying a claim
- D. Explaining a claim denial in writing
Show the answer
Answer: B
Failing to acknowledge and act reasonably promptly on claim communications is a classic unfair claims settlement practice. Paying valid claims promptly is exactly what the law requires. Requesting proof of loss is a legitimate part of processing a claim. Explaining a denial in writing is proper conduct, not a violation.
NMSA 59A-16 (unfair claims settlement practices)
Question 5Marcus, a New Mexico producer, offers a client a $50 gift card to buy a life policy that the client would not otherwise purchase. This is best described as what?
- A. A permitted marketing expense
- B. An unlawful rebate or inducement
- C. A lawful shared commission
- D. A required disclosure
Show the answer
Answer: B
Offering something of value not stated in the policy to induce a purchase is an unlawful rebate or inducement. It is not a normal marketing expense because it is tied to buying a specific policy. It is not a commission split, which only happens between licensed producers. It is not a disclosure of any kind.
NM Insurance Code, rebating and inducement prohibitions (concept tested; verify exact section under NMSA 59A-16)
Take the free New Mexico practice test, every question with the answer and the explanation
New Mexico exam FAQs
How many questions are on the New Mexico life insurance exam?
100 scored questions, with 120 minutes on the clock.
What score passes the New Mexico exam?
You need 70% to pass.
How much does the New Mexico life insurance exam cost?
The exam fee is $75 per attempt, paid to PSI Exams. Licensing application and fingerprint fees are separate.
What happens if I fail the New Mexico exam?
No stated wait between early attempts, but a maximum of 4 attempts per line of authority; after the 4th unsuccessful attempt, a six-month waiting period applies (NMSA 59A-11-6(E)). Exam fee valid one year, non-refundable. About 62% of first-time life exam takers pass nationally (NAIC, latest published data). Failing once is common, and the fix is drilling the sections your score report names.
Does New Mexico require prelicensing education before the exam?
No. New Mexico does not require prelicensing education for the life line, which means how you study is up to you and practice exams carry more of the load.
What RingReady is, and is not
RingReady sells study materials and practice exams for the life insurance licensing exam. We are not a state-approved prelicensing education provider, and practicing here does not by itself satisfy any state's education requirement.
If your state requires prelicensing education, you must complete it with an approved provider; your state insurance department publishes the approved list. What we do is make sure that when you sit down for the real exam, the questions feel familiar.
Practice the New Mexico exam until it feels familiar.
Practice questions written to every section of the outline above, full timed practice exams matched to the real format (100 questions, 120 minutes), and a mastery map that shows what to study next.
A free placement plus free practice questions. No card to start.
Take the free New Mexico practice test · How to pass the exam