New Mexico Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency licenses resident property and casualty insurance producers in New Mexico?
- a.New Mexico Office of Superintendent of Insurance (OSI)✓
- b.New Mexico Motor Vehicle Division
- c.New Mexico Regulation and Licensing Department
- d.New Mexico Secretary of State
New Mexico regulates insurers and licenses the individuals and agencies that sell insurance through the Office of Superintendent of Insurance (OSI), verified at osi.state.nm.us. OSI expressly states it licenses producers, including a Property and Casualty line of authority.
A New Mexico producer offers a prospect cash equal to part of the commission to induce the purchase of a homeowners policy. Under unfair trade practices rules, this is:
- a.Permitted if disclosed to the insurer
- b.Permitted for new customers only
- c.Prohibited rebating✓
- d.Required to be reported but otherwise lawful
Rebating — giving any part of the premium or commission, or other valuable consideration, as an inducement to buy — is a prohibited unfair trade practice that can cause unfair discrimination among similar insureds. It is grounds for discipline by the New Mexico Office of Superintendent of Insurance.
Under New Mexico law, once a personal auto or homeowners policy has been in force beyond its initial period, mid-term cancellation by the insurer is generally allowed only:
- a.For any reason with no notice
- b.For specific statutory reasons such as nonpayment of premium, fraud, or a substantial increase in risk, with required advance written notice✓
- c.Only within 24 hours of issuance
- d.Never, because in-force policies can never be cancelled
New Mexico restricts mid-term cancellation of seasoned personal-lines policies to defined grounds (for example nonpayment, fraud, or a material increase in the hazard) and requires advance written notice so the insured can find replacement coverage. Specific notice day-counts are set by statute; verify current figures with the New Mexico OSI.