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New Mexico Life Insurance — Information & Free Practice

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New Mexico Life Insurance

Provider
PSI Services LLC
Format
Computer administered at a test center or by remote proctor
Exam questions
100 scored items; 5 to 10 additional unscored experimental questions may be administered
Time limit
2 hours
Passing score
70% correct
Exam fee
$75
Examination outline
  • Insurance Regulation (10%)
    • Licensing
    • Licensing > Process (59A-11-2, 3, 59A-12-12; Reg 13.4.2.8, .9)
    • Licensing > Types of Licensees (Reg 13.4.2.7, .11)
    • Licensing > Types of Licensees (Reg 13.4.2.7, .11) > Insurance Producers (59A-12-2)
    • Licensing > Types of Licensees (Reg 13.4.2.7, .11) > Brokers (59A-12-3)
    • Licensing > Types of Licensees (Reg 13.4.2.7, .11) > Consultants (59A-11A-1-8)
    • Licensing > Types of Licensees (Reg 13.4.2.7, .11) > Nonresident (59A-12-25) (59A-11-24)
    • Licensing > Types of Licensees (Reg 13.4.2.7, .11) > Temporary (59A-11-4; 59A-12-19; Reg 13.4.2.12)
    • Licensing > Maintenance and Duration
    • Licensing > Maintenance and Duration > Expiration and Renewal (59A-11-10, 11)
    • Licensing > Maintenance and Duration > Address Change (59A-12-17) (59A-11-24)
    • Licensing > Maintenance and Duration > Continuing Education (59A-12-26; Reg 13.4.7.9, .12)
    • Licensing > Disciplinary Actions
    • Licensing > Disciplinary Actions > Suspension, Revocation, or Refusal to Renew (59A-11-8, 10, 14–16, 18)
    • Licensing > Disciplinary Actions > Cease and Desist Orders (59A-16-27)
    • Licensing > Disciplinary Actions > Penalties and Fines (59A-1-18, 59A-11- 17, 21)
    • State Regulation
    • State Regulation > Superintendent's General Duties and Powers (59A-2-8-10)
    • State Regulation > Company Regulation
    • State Regulation > Company Regulation > Certificate of Authority (59A-5-10)
    • State Regulation > Company Regulation > Unfair Claims Settlement Practices (59A-16-20)
    • State Regulation > Company Regulation > Complaint Record (59A-16-22)
    • State Regulation > Company Regulation > Appointment of Insurance Producer (59A- 11-12; Reg 13.4.2.17)
    • State Regulation > Company Regulation > Termination of Insurance Producer Appointment (59A-11-13; Reg 13.4.2.29)
    • State Regulation > Insurance Producer Regulation
    • State Regulation > Insurance Producer Regulation > Shared Commissions (59A-12-24)
    • State Regulation > Insurance Producer Regulation > Fiduciary Duties (59A-12-22)
    • State Regulation > Insurance Producer Regulation > Prohibited Premiums or Charges (59A-16- 24)
    • State Regulation > Unfair Insurance Trade Practices
    • State Regulation > Unfair Insurance Trade Practices > Misrepresentation (59A-16-4, 23)
    • State Regulation > Unfair Insurance Trade Practices > False Advertising (59A-16-4, 5)
    • State Regulation > Unfair Insurance Trade Practices > Twisting (59A-16-6)
    • State Regulation > Unfair Insurance Trade Practices > Defamation (59A-16-10)
    • State Regulation > Unfair Insurance Trade Practices > Unfair Discrimination (59A-16, 13, 17(D))
    • State Regulation > Unfair Insurance Trade Practices > Rebating (59A-16-16–18)
    • State Regulation > Unfair Insurance Trade Practices > Boycott, Coercion, or Intimidation (59A- 16-19)
    • State Regulation > Examination of Books and Records (59A-4-3, 4)
    • State Regulation > Insurance Fraud Act (59A-16C-1-16)
    • State Regulation > Consumer Information Privacy (59A-2-9.3; Reg 13.1.3.1-.28)
  • Federal Laws and Regulations (3%)
    • Fair Credit Reporting Act - Purpose
    • 18 United States Code (USC) Sections 1033 and 1034 - Purpose (Letter of Written Consent)
    • National Do Not Call List
  • General Insurance Concepts (10%)
    • Risk
    • Risk > Methods of Handling Risk (Avoidance, Retention, Sharing, Reduction, Transfer)
    • Risk > Elements of Insurable Risks
    • Risk > Definitions (Risk, Hazard, Peril, Loss)
    • Classifications of Insurers
    • Classifications of Insurers > Mutual, Stock, Fraternals
    • Classifications of Insurers > Admitted, Non-Admitted
    • Classifications of Insurers > Foreign, Domestic, Alien
    • Elements of a Contract
    • Elements of a Contract > Consideration
    • Elements of a Contract > Competent Parties
    • Elements of a Contract > Legal Purpose
    • Elements of a Contract > Offer
    • Elements of a Contract > Acceptance
    • Authority and Powers of Producers
    • Authority and Powers of Producers > Express
    • Authority and Powers of Producers > Implied
    • Authority and Powers of Producers > Apparent
    • Authority and Powers of Producers > The Law of Agency
    • Legal Interpretations Affecting Contracts
    • Legal Interpretations Affecting Contracts > Reasonable Expectations
    • Legal Interpretations Affecting Contracts > Indemnity
    • Legal Interpretations Affecting Contracts > Good Faith
    • Legal Interpretations Affecting Contracts > Fraud
    • Legal Interpretations Affecting Contracts > Warranties, Representations, Misrepresentations, and Concealment
  • Life Insurance Basics (21%)
    • Insurable Interest
    • Personal Uses of Life Insurance
    • Personal Uses of Life Insurance > Survivor Protection
    • Personal Uses of Life Insurance > Liquidity
    • Determining Amount of Personal Life Insurance
    • Determining Amount of Personal Life Insurance > Human Life Value Approach
    • Determining Amount of Personal Life Insurance > Needs Approach
    • Business Uses of Life Insurance
    • Business Uses of Life Insurance > Buy-Sell Funding
    • Business Uses of Life Insurance > Key Person
    • Business Uses of Life Insurance > Executive Bonuses
    • Factors in Premium Determination
    • Factors in Premium Determination > Mortality
    • Factors in Premium Determination > Interest
    • Factors in Premium Determination > Expense
    • Premium Frequency
    • Field Underwriting
    • Field Underwriting > Application Procedures
    • Field Underwriting > Warranties and Representations
    • Field Underwriting > Disclosures and Privacy
    • Policy Delivery
    • Policy Delivery > Effective Date of Coverage
    • Policy Delivery > Policy Review
    • Policy Delivery > Premium Collection
    • Policy Delivery > Statement of Good Health
    • Company Underwriting
    • Company Underwriting > Sources of Information
    • Company Underwriting > Classifications of Risk (Preferred, Standard, Substandard, Declined)
  • Types of Life Insurance Policies (19%)
    • Term Life Insurance
    • Term Life Insurance > Level
    • Term Life Insurance > Decreasing
    • Term Life Insurance > Increasing Term
    • Whole (Permanent, Ordinary) Life Insurance
    • Whole (Permanent, Ordinary) Life Insurance > Single Premium
    • Whole (Permanent, Ordinary) Life Insurance > Continuous Premium
    • Whole (Permanent, Ordinary) Life Insurance > Limited Payment
    • Whole (Permanent, Ordinary) Life Insurance > Adjustable Life
    • Universal Life
    • Variable Life
    • Variable Universal
    • Indexed Universal Life
    • Specialized Policies
    • Specialized Policies > Joint Life
    • Specialized Policies > Survivorship Life
    • Specialized Policies > Juvenile
    • Group Life Insurance
    • Group Life Insurance > Eligible Groups
    • Group Life Insurance > Characteristics of Group Life Insurance
  • Life Insurance Policy Provisions, Options, and Riders (21%)
    • Standard Life Insurance Provisions
    • Standard Life Insurance Provisions > Ownership
    • Standard Life Insurance Provisions > Assignment
    • Standard Life Insurance Provisions > Right to Examine (Free Look)
    • Standard Life Insurance Provisions > Payment of Premiums
    • Standard Life Insurance Provisions > Grace Period
    • Standard Life Insurance Provisions > Misstatement of Age/Sex
    • Standard Life Insurance Provisions > Incontestability
    • Standard Life Insurance Provisions > Reinstatement
    • Standard Life Insurance Provisions > Entire Contract
    • Beneficiary Designation Options
    • Beneficiary Designation Options > Individuals
    • Beneficiary Designation Options > Classes
    • Beneficiary Designation Options > Minors
    • Types of Beneficiaries
    • Types of Beneficiaries > Primary and Contingent
    • Beneficiary-Related Clauses
    • Beneficiary-Related Clauses > Common Disaster
    • Settlement Options
    • Settlement Options > Cash Payment (Lump Sum)
    • Settlement Options > Interest Only
    • Settlement Options > Life Income
    • Settlement Options > Fixed-Period
    • Settlement Options > Fixed-Amount Installments
    • Settlement Options > Joint
    • Settlement Options > Last Survivor
    • Nonforfeiture Options
    • Nonforfeiture Options > Cash Surrender Value
    • Nonforfeiture Options > Extended Term
    • Nonforfeiture Options > Reduced Paid-Up Insurance
    • Policy Loan and Withdrawal Options
    • Policy Loan and Withdrawal Options > Loans
    • Policy Loan and Withdrawal Options > Automatic Premium Loans
    • Policy Loan and Withdrawal Options > Withdrawals Partial Surrenders
    • Dividend Options
    • Dividend Options > Paid-Up Additions
    • Dividend Options > Cash Payment (Lump Sum)
    • Dividend Options > One Year Term
    • Dividend Options > Reduction of Premium
    • Dividend Options > Accumulation at Interest
    • Disability Riders
    • Disability Riders > Waiver of Premium
    • Disability Riders > Disability Income Benefit
    • Disability Riders > Payor Benefit Life
    • Riders Covering Additional Insureds
    • Riders Covering Additional Insureds > Spouse
    • Riders Covering Additional Insureds > Children
    • Riders Covering Additional Insureds > Family term rider
    • Riders Affecting Death Benefit Amount
    • Riders Affecting Death Benefit Amount > Accidental Death
    • Riders Affecting Death Benefit Amount > Guaranteed Insurability
    • Riders Affecting Death Benefit Amount > Cost of Living
    • Riders Affecting Death Benefit Amount > Return of Premium
    • Riders Affecting Death Benefit Amount > Accelerated (Living) Benefit Provision Rider
    • Riders Affecting Death Benefit Amount > Long-Term Care Rider
    • Policy Exclusions
  • Annuities (12%)
    • Annuity Principles and Concepts
    • Annuity Principles and Concepts > Accumulation Period versus Annuity Period
    • Annuity Principles and Concepts > Owner, Annuitant, and Beneficiary
    • Immediate versus Deferred Annuities
    • Annuity (Benefit) Payment Options
    • Annuity (Benefit) Payment Options > Life Contingency Options
    • Annuity (Benefit) Payment Options > Annuities Certain
    • Annuity (Benefit) Payment Options > Pure Life versus Life with Guaranteed Minimum
    • Annuity (Benefit) Payment Options > Single Life versus Multiple Life
    • Annuity Products
    • Annuity Products > Fixed Annuities
    • Annuity Products > Equity Indexed Annuities
    • Annuity Products > Variable Annuities
    • Uses of Annuities
    • Uses of Annuities > Lump-Sum Settlements
    • Uses of Annuities > Retirement Income
    • Uses of Annuities > Long-Term Care Rider
    • Uses of Annuities > Guaranteed Minimum Withdrawal Benefit (GMWB)
  • Federal Tax Considerations for Life Insurance (4%)
    • Taxation of Personal Life Insurance and Annuities
    • Taxation of Personal Life Insurance and Annuities > Premiums
    • Taxation of Personal Life Insurance and Annuities > Dividends
    • Taxation of Personal Life Insurance and Annuities > Settlements
    • Taxation of Personal Life Insurance and Annuities > Last In First Out (LIFO) and First In First Out (FIFO)
    • Taxation of Personal Life Insurance and Annuities > Surrenders and Withdrawals
    • Modified Endowment Contracts (MECs)
Examination sources