Free Insurance Regulation Practice Questions
New Mexico Personal Lines exam (series 18-38) — 95 practice questions.
Subtopics: Unfair claims practices, License lines, Personal lines authority, Fiduciary, Rebating, Misrepresentation, Continuing education, Replacement disclosure, Unfair discrimination, Privacy, Recordkeeping, Guaranty association, Complaint handling, Minimum age, Fingerprints, Exam retakes, Exam exemptions, Lines of authority, License vs authority, Insurance consultant, Nonresident service of process, Temporary license, Lapsed license, Address change, CE live instruction, CE minimum length, Records, Reporting actions, Fiduciary funds, Appointment required, Insurer withdrawal, Producer termination, Grounds for discipline, Relicensing, Fine in lieu, Criminal penalty, Office of Superintendent, Rulemaking, Examinations, Unauthorized transaction, Unfair claims, Complaint definition, Commission sharing, Twisting, Defamation, Receiving rebates, Boycott, coercion, intimidation, False claims, Anti-fraud plan, Fair Credit Reporting Act, Gramm-Leach-Bliley, Fraud and false statements, Do Not Call, Terrorism Risk Insurance Act, McCarran-Ferguson Act, Anti-money laundering, CAN-SPAM Act, FCRA reporting periods, FCRA adverse action, FCRA permissible purpose, FCRA disputes, Claims history databases, GLBA opt-out, GLBA privacy notice, GLBA enforcement, Prohibited persons (1033), Prohibited persons (1034), Telemarketing calling hours, Do-Not-Call exceptions, Do-Not-Call registry, History of regulation, Risk retention groups, Purchasing groups, Mandatory flood purchase, NFIP origin, Federal Insurance Office, NAIC role, Nonresident licensing, Misrepresentation and advertising, Fraud warning, Guaranty associations
Read the Insurance Regulation study guide
Sample questions & answers
1. Under New Mexico's unfair claims practices law, a personal lines insurer must:
Promptly investigate and act on claims
Failing to adopt reasonable standards for prompt investigation, or failing to affirm or deny coverage within a reasonable time after proof of loss, are unfair claims practices.
2. To sell New Mexico homeowners and auto insurance a producer generally needs a license in which line of authority?
Property and casualty
Personal lines such as homeowners and auto fall under the property and casualty (or personal lines) authority.
3. New Mexico offers a limited personal lines license that authorizes a producer to sell:
P&C sold to families for noncommercial use
A personal lines license authorizes selling property and casualty coverage to individuals and families for noncommercial purposes.
4. Premiums a New Mexico personal lines producer collects from clients must be:
Held in trust and remitted to the insurer
Premium funds are fiduciary money that must be properly handled and remitted to the insurer.
Practice: Insurance Regulation
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
