New Mexico Insurance Licensing Information Bulletin

New Mexico Office of Superintendent of Insurance

Licensing Information Handbook Effective as of July 15, 2020

Published by Prometric Providing License Examinations for the State of New Mexico

Revised 04032019

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Contents

Practice Exams ...... 9 Introduction 1 A Message from the Department ...... 1 Taking Your Exam 10 At a Glance ...... 1 The Testing Process ...... 10 Test Center Regulations ...... 10 New Mexico Licensing Requirements 3 Question Types...... 12 Types of Licenses ...... 3 Experimental Questions ...... 12 Moving to New Mexico ...... 4 Your Exam Results ...... 13 Nonresident Applicants ...... 4 Appeals Process ...... 13 Fees ...... 4 Apply for Your License 14 Scheduling Your Exam 5 Submit Your Application ...... 14 Exam Restrictions ...... 5 Business Name ...... 14 Register and Schedule ...... 5 New Mexico Office of the Superintendent of Online ...... 5 Insurance Application Review Process .... 15 By Fax or Mail...... 5 License Expiration ...... 15 By Phone ...... 5 Maintaining Your License ...... 16 Reschedule and Cancellation ...... 6 NIPR: National Insurance Producer Registry16 If Absent or Late for Your Appointment ...... 6 License Renewal ...... 16 Holidays ...... 6 Insurance Continuing Education ...... 16 Emergency Closings ...... 6 Exam Content Outlines 18 Testing Accommodations ...... 6 Test Centers ...... 7 Exam Registration Form 62

Preparing for Your Exam 8 Credit Card Payment Form 64 Content Outlines Overview ...... 8 Study Materials ...... 8

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E Introduction

This Handbook provides information about the examination and licensing process A Message for individuals who wish to become licensed by The Office of Superintendent of Insurance (“OSI”). In addition to the information in this Handbook, you should from the also review the information on eligibility to hold a license on the OSI website: Department https://www.osi.state.nm.us/ The Handbook does not provide instructions pertaining to licensing business entities. For information about licensing a business entity, visit the Producer Licensing Bureau website at https://www.osi.state.nm.us/, e-mail the Producer Licensing Bureau at [email protected] or call the Producer Licensing Bureau at 505-827-4349 This handbook provides information about the examination and licensing process for obtaining a resident insurance license. You should read this Licensing At a Glance Handbook, including the examination content outlines, prior to taking an exam. If you are interested in applying for a nonresident license, you can apply online via NIPR at http://www.nipr.com/ Overview of Licensing Process Follow these main steps if you are interested in obtaining an insurance license. 1 Read the information on the Department’s website for the type of license you desire to make sure you meet all of the requirements. https://www.osi.state.nm.us/

2 Review this handbook to determine which exam(s) you need to pass, if any, for the type(s) of license you require. Prepare for your exam, using this bulletin and materials from other sources. The content outlines at the back of this guide are the basis for the exams.

3 Register and schedule your exam. The easiest way to schedule is online at https://www.prometric.com/new-mexico/insurance . At this time to schedule any ProProctor exams you must call 800.868.6113 between 8 a.m. and 9 p.m. Eastern time Monday through Friday.

4 Bring the required identification to the test center and take the exam(s). You will receive your results immediately after the exam.

5 You must pass your exam then apply for your license at http://www.nipr.com/

6 If you do NOT pass the exam, repeat steps 2 through 4. PLEASE NOTE: OSI permits a maximum of 4 attempts to pass an exam. If you do not pass an exam after 4 attempts, you must wait six-months after failing the fourth attempt before you are eligible to take that exam again. Note Passing an exam does not guarantee that you will receive a license. If you take an exam unnecessarily or are found unqualified, neither the exam fee nor the license application fee will be refunded.

To get answers not provided in this handbook

Visit our Website:

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https://www.prometric.com/new-mexico/insurance

Direct licensing-related questions to: Office of Superintendent of Insurance Phone: 505-827-4349 E-mail: [email protected] Website: https://www.osi.state.nm.us/

Direct questions and requests for information about exams to: Prometric 7941 Corporate Drive Nottingham, MD 21236 Phone: 800-813-6737 TDD User: 800.790.3926 Website: https://www.prometric.com/new-mexico/insurance

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New Mexico Licensing Requirements

New Mexico Insurance Code and New Mexico Administrative Code set forth the requirements for licensees, insurers and insurance products in the State of New Mexico. The New Mexico legislature may amend the statutes and the Office of Superintendent of Insurance may promulgate changes to administrative code or policies as necessary. Licensees must remain aware of changes in law, code and Department policies that affect their activities. • For NM statutes select “Statutes & Rulemaking” from the “OSI” menu option on the OSI website at www.osi.state.nm.us. • For NM Administrative Code select “Statutes & Rulemaking” from the “OSI” menu option on the OSI website at www.osi.state.nm.us • To receive Department regulatory bulletins and press releases, register online at https://www.osi.state.nm.us/OSISubscription.aspx. The Department grants licenses specifying one or more lines of license authority. Types of Each license is only valid for the lines of license authority shown on the license. Licenses Exam requirements do not apply to business entity licenses and they do not apply to most nonresidents. Most residents and some nonresident adjusters must complete exams as shown in the following table. Obtain additional license requirements from the Producer page of the Producer Licensing Bureau website (https://www.osi.state.nm.us/).

License Line Exam Series Life Insurance Producer 1825 Accident and Health or Sickness Insurance Producer 1826 Life, Accident and Health or Sickness Insurance Producer 1827 Property Insurance Producer 1828 Casualty Insurance Producer 1829 Property, and Casualty Insurance Producer 1831 Title 1833 Bail 1834 Personal Lines Insurance Producer 1838 Public Adjuster 1839 Independent or Staff Adjuster 1840 Vida 1842 Accidente y Salud o Enfermedad 1843 Vida, Accidente y Salud o Enfermedad 1841 Propiedad 1845 Siniestros 1846 Propiedad y Siniestros 1844 Seguros de Títulos 1850 Seguros de Fianza 1851 Lineas Personales 1847 Ajustador Publico 1848

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Ajustador de Compania o Independiente 1849

Consult the Producer page of the OSI Website (https://www.osi.state.nm.us/) for detailed application requirements. Moving to New If you hold a resident insurance license in another state and are relocating to New Mexico Mexico, you can request an exam waiver. To qualify for a license based on the Insurance Exam Waiver, an applicant must meet all of the following requirements:

• Become a resident of New Mexico • Has held a valid resident license with the equivalent line(s) of authority prior to applying for a New Mexico license • Submit a written request detailing the state where licensed, what exam was taken and when the licenses was issued • Submit the license application and pay the appropriate fees within 90 days of becoming a resident of New Mexico • Submit a copy of the fingerprint receipt. See Fingerprint Requirements

Please note that requirements are subject to change. Please contact OSI directly at 505-827-4349 for specific information that may apply at the time of your relocation.

Nonresident If you are seeking a nonresident license, please visit the NIPR website at http://www.nipr.com/ for more information. Applicants The following fees may apply to your license application: Fees • Examination fee charged by Prometric ($75) for all exams – see the Exam Registration Form. • License fee, paid to OSI with your license application, consisting of one or more of the following: Prometric accepts payment by MasterCard, Visa, American Express, money order, company check, and cashier’s check. Personal checks and cash are not accepted. Prometric’s fees are not refundable or transferable.

OSI accepts payment by check or money order. If you apply online using a NIPR website, payment is accepted by credit card or electronic check. Please be aware that pursuant to NMSA 59A-6-1, the Department cannot refund or prorate fees.

Note: New Mexico license fees are subject to updates each biennial birth month. Obtain up-to-date fee information from the Producer Licensing Bureau website at https://www.osi.state.nm.us/ or by contacting the Producer Licensing Bureau by email at [email protected], or by phone at 505- 827-4349

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Scheduling Your Exam

Exam Restrictions Note: You will be eligible to take the exam up to four attempts to pass an exam for a line of authority. After the fourth unsuccessful attempt, you will be placed into a six month waiting period and not be able to retake the exam until the waiting period is over. NMSA 59A-11-6 (E) New Mexico Office of Superintendent of Insurance and Prometric are pleased to announce the ability to schedule your New Mexico Insurance exams in two ways either in a physical test center or in a remotely proctored testing locations using Prometric’s ProProctor application. You may take the exam at any Prometric test center in the United States or in a remotely proctored location. *ProProctor – ProProctor gives you greater flexibility to choose where to test, when to test and how to test. It is a reliable, convenient – yet secure – testing experience. For a ProProctor exam you must provide a computer (tablets prohibited) with a camera, Register and microphone and an internet connection. To confirm your computer will allow you to test through ProProctor™ please perform a system check prior to scheduling your ProProctor Schedule exam. You can reference our User Guide for additional technical and environmental requirements.

ProProctor System Requirements Laptop/PC Power Source Please plug your device directly into a power source, unattached from a docking station. Screen Resolution 1024 x 768 is the minimum resolution required Operating System Windows 7 or higher | MacOS 10.13 or higher Web Browser Current version of Google Chrome Internet Connection Speed 0.5 mbps or greater Wi-Fi Connection Please position your device where you can receive the strongest signal. For the best experience, please use an ethernet cable to connect directly to the router.

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Online

You can easily register and schedule your exam online at any time using our Internet Registration Service by going to: 1. http://www.prometric.com/new-mexico/insurance. 2. Click on Create or Login to Your Account to register. You can immediately schedule your exam once you create your account or log in later to schedule your exam. 3. If you choose to take your exam in a Test Center then click on Schedule Test Center and follow the prompts. 4. If you choose to take your exam in in a Remotely Proctored location, then click on Schedule Remote Proctor* and follow the prompts.

Important Note: Every candidate will need to create a new account, but those with exiting profiles will need to use the Welcome email as a starting point. If a candidate creates a new profile without using that link, a duplicate profile will be created and could result in scheduling challenges.

*Remote Proctoring – ProProctor gives you greater flexibility to choose where to test, when to test and how to test. It is a reliable, convenient – yet secure – testing experience.

By Fax or Mail You may fax the completed Exam Registration Form found at the end of this handbook to Prometric to (877) 341-9469. You must also include the completed Credit Card Payment Form (Visa, MasterCard or American Express). The cardholder’s signature must be on the Form. OR

You may mail the completed Exam Registration Form and the appropriate exam fee to the address on the form. When registering by mail, you may pay the exam fee by Visa, MasterCard or American Express, company check, cashier’s check or money order. Personal checks and cash are not accepted. If paying by credit card, you must also include the completed Credit Card Payment Form (Visa, MasterCard or American Express). The cardholder’s signature must be on the Form. By Phone If you are unable to schedule online, you may schedule the examination by calling (800) 813-6737 between 8 a.m. and 9 p.m. (Eastern Time), Monday through Friday, and between 10 a.m. and 3 p.m. (Eastern Time), Saturday and Sunday. Please have your exam information and credit card information for payment available.

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Reschedule and Cancellation To reschedule your existing exam appointment, you must contact Prometric 48 hours prior to the exam appointment date in order to avoid a forfeiture of your examination fee. If you need to reschedule or confirm your appointment, please go to https://www.prometric.com/new-mexico/insurance. After you cancel your exam, you must initiate a refund by going to https://fs6.formsite.com/Prometric/form33/index.html and completing the refund form. Completion of this form does not guarantee a refund.

Prometric will review refund requests and email decisions to you within 7-10 business days of receipt unless further research and/or documentation are required. Prometric reserves the right to request documentation to support any illness or emergency claim. Refund requests made via phone will not be accepted.

If you change or cancel your appointment without proper notice, you may forfeit your examination fee(s). Refund requests are reviewed on a case by case basis. There will be no refund for appointments that are cancelled less than 48 hours prior to scheduled exam without verification or documentation of illness or emergency. If Absent or Late for Your Appointment If you miss your appointment, or arrive late and are not allowed to test, you will forfeit your exam fee(s). Holidays Testing generally does not occur on federal holidays. Additional state holidays may be observed in the state where your schedule the exam appointment. Emergency Closings Severe weather or an emergency could require canceling scheduled exams. If this occurs, Prometric will attempt to contact you by phone; however, you may check for testing site closures by checking our website at https://www.prometric.com/en-us/pages/siteclosure.aspx or calling Prometric at (866) 370-3411. If the site is closed, the exam will be rescheduled without a rescheduling fee.

If a test center is open for testing and you choose not to appear for the appointment, you will forfeit the exam fees and must reschedule and pay another exam fee. ADA Accommodation. Reasonable testing accommodations are provided to Testing allow candidates with documented disabilities recognized under the ADA an Accommodations opportunity to demonstrate their skills and knowledge. Prometric makes every effort to provide reasonable testing accommodations that enable all test takers to take examinations. you require testing accommodations under the Americans with Disabilities Act (ADA), please complete and submit a Testing Accommodation Request Form online at https://www.prometric.com/en-us/for-test- takers/prepare-for-test-day/pages/arrange-testing-accommodations.aspx, or contact Prometric at (888) 226-9406 to obtain an Accommodation Request Form. Professional documentation of the disability must be submitted with the Accommodation Request Form to aid Prometric in determining the appropriate testing accommodations. Thirty days’ advance notice is required for all testing arrangements. There is no additional charge for these accommodations.

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ESL Accommodation. All examinations are given in English. If English is not your primary language, you may qualify for additional time for the test by requesting an ESL Authorization from Prometric. To request an ESL authorization, please submit:

• A personal letter requesting the authorization; and • A letter from the English instructor or sponsoring company (on company letterhead), certifying that English is not your primary language.

Please fax documents to 800.347.9242 and allow three (3) days for processing. If your request is approved, Prometric may extend the time limit on your examination to time-and-one-half or 150% of the normal time limit. Prometric will inform you by mail whether your request for accommodation is approved. You should not schedule your exam until you have received the confirmation email. Exams scheduled before the ESL request has been approved will not include extra time. Test Centers You may take the exam at any Prometric test center in the United States. Test center locations are subject to change. Be sure to verify the address of and directions to the test center before you leave for the exam. Go to https://www.prometric.com/new-mexico/insurance and click on “Check appointment availability” to confirm the address and get directions. Test Centers most convenient in New Mexico include:

New Mexico Test Centers Albuquerque, NM Farmington, NM 8801 Jefferson Street 4601 College Blvd. Building A Info Tech Bldg Suite 101 Room 7120 Albuquerque, NM 87113 Farmington, NM 87402 Las Cruces, NM Roswell, NM 3291 Del Ray Blvd. 52 University Blvd. Suite D RM 210 Las Cruces, NM 88012 Roswell, NM 88203

Santa Fe, NM 720 St. Michael’s Drive Suite #2A Santa Fe, NM 87505

Additional Test Centers Near New Mexico Odessa, TX Lubbock, TX El Paso, TX 4901 East University 4601 South Loop 289 8550 Boeing Drive Mesa Bldg Suite 22 Suite 200 Room 1154 Lubbock, TX 79424 El Paso, TX 79925 University of TX Prem Basin Odessa, TX 79762 Colorado Springs, CO Tempe, AZ Phoenix, AZ 2790 N. Academy Blvd. 1275 West Washington 1951 West Camelback Rd Suite 317 Street #120 Colorado Springs, CO Suite 110 Camel West Plaza 80917 Tempe, AZ 85281 Phoenix, AZ 85015

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Preparing for Your Exam

Being well prepared can help you pass the exam and save time and possibly money spent retaking it. This section offers: • An overview of the exam content outlines. • Information about study materials. • An explanation of how to take a practice exam. Content The license exam for each type of license consists of questions that test knowledge Outlines of topical areas listed in the content outline for that exam. An overview of each exam content outline appears at the end of this handbook. Overview Note: Do not schedule the exam until you are familiar with all subject areas in the applicable content outline.

Study OSI does not provide study materials, cannot recommend any supplier for study Materials materials and does not evaluate the quality of any training course or study material. You are free to use the materials of your choice to prepare for the exam. Different publishers provide materials to assist you in preparing for insurance licensing exams. These materials take different approaches and you should choose one that meets your needs. Neither OSI nor Prometric reviews or approves these study materials.

General recommendations. You may obtain recommendations for study materials and pre-licensing study courses from insurance companies, the company or agency you plan to work for, or local insurance and agents’ associations. New Mexico statutes

You can also access New Mexico statutes and insurance regulations at https://www.osi.state.nm.us/MiscPages/insrulemakingandstatutes.aspx

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Practice Exams To take a practice exam, select or copy link below to your browser: https://www.prometric.com/en-us/clients/insurance/Pages/practice- exam.aspx

While practice exams contain general, non-state specific insurance questions, they are created in the same format and use the same question types as the actual licensure exams. Practice exams are designed to help you become familiar with the computer-based testing process.

During the practice exam, you will get immediate feedback to correct and incorrect responses as well as overall feedback at the end of the session just as you would during the actual exam. Practice exams are available for: • (LIPA) Life Insurance Producer/Consultant Practice Exam in English only • (HIPA) Health Insurance Producer/Consultant Practice Exam in English only • (PIPA) Property & Casualty Insurance Producer Practice Exam in English only There is no cost to take Prometric Practice Exams!

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Taking Your Exam

Knowing what to expect when taking the exam may help you prepare for it. This section contains: • An overview of the testing process. • Regulations that will be enforced at the testing center. • Information about the types of questions on the exam. • A guide to understanding the exam results. • Information about appeals. The exam will be administered by computer; you are not required to have any The Testing computer experience or typing skills to take the exam. Process Arrival. You should arrive at least 30 minutes before the scheduled exam appointment. This allows time for you to sign in and for staff to verify your identification and complete all security checks. Identification Required. You must present one valid (non-expired) form of identification before taking the test. The identification document must: • Be government-issued (e.g., driver’s license, state-issued identification card, passport, or military identification card). • Contain both a current photo and signature (if not you must present two identification cards: one with your photo and one with your signature). • Exactly match the name used to register for the exam (including designations such as “Jr.” and “III”).

Important Failure to provide appropriate identification at the time of the exam is considered a missed appointment. As a result, you will be required to pay another full examination fee before making another appointment. If you cannot provide the identification listed above, contact Prometric before scheduling the appointment to arrange an alternative way to meet this requirement.

Test Center Copyrighted Questions. All test questions are the property of Prometric LLC and Regulations are protected by copyright. Federal law provides severe civil and criminal penalties for the unauthorized reproduction, distribution, or exhibition of copyrighted materials.

To ensure that all candidates are tested under similar conditions, the following regulations and procedures will be enforced at each test center. The Remote Proctor (RP) and/or Security Agent (SA) is authorized to dismiss you from the test session for a violation of any of the Testing Regulations, including exhibiting abusive behavior towards the RP or SA. If you are found to have violated any of the regulations during your exam, the RP is required to notify Prometric and your test sponsor.

1 All exams are continuously monitored by video and audio recording. 2 You must present valid (unexpired) and acceptable ID(s) in order to take your test. (See “Identification required” in the previous section). 3 Unauthorized personal items may not be accessible while testing. Such items include, but are not limited to: outerwear, hats, food, drinks, purses, bags or briefcases, notebooks, watches, cell phones, electronic devices, or wearable technology. 4 Eating, drinking, smoking, and chewing gum are prohibited during the exam.

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E 5 You will be required empty and turn all pockets inside-out and raise shirt sleeves above your wrists prior to starting your exam. 6 If you are wearing eyeglasses, you will be required to remove them for visual inspection to ensure they don’t contain a recording device. 7 You must also show your ID to the Test Center Administrator (TCA) and go through the security checks after any break in testing. 8 You are prohibited from communicating, publishing, reproducing, or transmitting any part of your test, in any form or by any means, verbal or written, for any purpose. 9 Written notes, published materials and other testing aids are strictly prohibited. 10 Light clothing items removed for comfort such as sweaters, suit jackets, scarves, etc., must be hung on the examinee’s chair, not placed in laps or on the workstation desktop. Outerwear such as heavy coats, parkas, rain coats, etc., is not permitted in the immediate testing area. 11 Changing location while testing, turning off lighting or audio, speaking to or receiving aid from other individuals is strictly prohibited. 12 You are not allowed to use any electronic device or phone during breaks. 13 Candidates are required to be professional, civil and respectful at all times while testing.

Note Failure to follow any of these security procedures may result in the disqualification of the examination. Prometric reserves the right to audio and videotape any examination session. Personal You are required to clear your testing area of personal items. Note the following: • Electronic equipment—cameras, tape recorders, cell phones, PDAs, pagers, etc.—is not Items permitted in the testing area. • Other personal items—briefcases, backpacks, etc.—are not permitted in the testing area.

Misconduct or Disruptive

Behavior Candidates who engage in any kind of misconduct or disruptive or offensive behavior may be dismissed from the examination. Examples are: giving or receiving help, sharing supplies, taking part in an act of impersonation, removing test materials or notes from the testing room, and/or using rude or offensive language and behavior that delays or interrupts testing.

Please note: Test center administrators are not allowed to answer any questions pertaining to the exam content. If you do not understand a question on the examination, you should answer the question to the best of your ability.

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Question Types The examination contains four-option multiple-choice questions. These questions are designed to be as clear and concise as possible while testing knowledge and comprehension of insurance concepts as well as the application of the insurance concepts. The design of the exam ensures that those who possess the required knowledge of the specific insurance line of authority being tested should perform well on the examination for which they prepared. Question Formats. Three different multiple-choice formats are used. Each format is shown in the following examples. An asterisk (*) indicates the correct answer in each sample question. Which one of the following is a type of health insurance policy designed to replace the wages of an insured that is unable to work due to an accident or sickness? * 1. Disability Income Insurance Policy 2. Employer-Sponsored Group Major Medical Policy 3. Hospital Expense Insurance Policy 4. Special Risk Policy Format 1— Direct

Question Benefits under workers’ compensation insurance are payable:

1. For bodily injury that is accidental or intentional

* 2. Regardless of the liability of the employer

3. Unless safety rules are violated 4. Up to a maximum of 30 percent of weekly wages

Format 2— A life insurance policy may include provisions that do all of the following EXCEPT: Incomplete Sentence 1. Restrict coverage if death is caused by suicide 2. Require evidence of insurability to reinstate coverage * 3. Extend the contestable period beyond two years 4. Adjust proceeds if the insured’s age is misstated on the application Format 3—All of the following except The examination may include some experimental questions that will not be scored. If present, they are distributed throughout the examination and will not be identified as such. These are used to gather statistical information on the questions before they are added to the examination as scored items. These experimental questions will not be counted for or against you in the final

examination score. Experimental Questions You will be helping us help future test takers by completing 5 experimental test questions in your exam. We plan to use the experimental questions on future exams based on your performance.

The questions will: • be randomly distributed within your test • will not be counted in your final score • time spent on the question will not be deducted from your test time

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Your Exam At the end of the exam, you will see a completion notice on screen. A copy of your Results score report will be emailed to the email address you provided at the time of scheduling. The report indicates the overall score and grade, including the numerical percentage of questions answered correctly and whether you passed or failed. To achieve a passing score on the examination, you must receive a 70% or higher on the examination.

The report also displays the correct percentage in each major section of the exam, as defined by the exam content outline. These section scores are shown to guide you, or your employer and/or trainer, about areas requiring additional preparation for retesting if you do not pass the exam. Even after you pass, you may want to focus on these areas as you begin to provide insurance products and services to the public.

Duplicate score reports, please use our electronic score report portal to download or print duplicate copies of your candidate score report when or as needed. Please visit https://scorereports.prometric.com. You will be required to enter the confirmation number of your exam and your last name to complete this task.

Appeals Our goal is to provide a quality exam and a pleasant testing experience for every candidate. If you would like to submit an appeal concerning examination content, Process registration, scheduling or test administration (testing site procedures, equipment, personnel, etc.), please submit an appeal by visiting http://www.prometric.com/contactus. Once the form has been submitted, you will receive an email response within 20 days indicating whether your appeal has been approved.

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Apply for Your License

Once you have passed your license exam, you can apply online at http://www.nipr.com/The Section must receive all required application materials, including the correct nonrefundable license fees, within one year after you pass the exam. NOTE: The Producer Licensing Bureau no longer accepts documents by fax.

• You must submit license applications through the NIPR electronic Submit Your licensing system (http://www.nipr.com/) Application • If you answer "Yes" to a background question on the application, submit your written statement accompanied by corresponding official court documents (printouts from a court's web site are not acceptable): • as part of your NIPR electronic license application (using the Attachments Warehouse) Business Name When conducting insurance business, New Mexico law requires that you use your legal business name.

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New Mexico Office of the Superintendent of Insurance Application Review Process It is your responsibility to ensure that you have completed the license application and other supporting documents fully, properly and accurately. If your application is incomplete, the Department will reject the application, delaying the licensing decision.

After receiving your application, the Department has up to 10 days to determine whether it contains all required information and is therefore “administratively complete. These timeframes are the outer limits by which the Department must grant or deny a license application. The Department processes most license applications within 10 days. The Department is usually able to process applications submitted electronically faster than applications submitted on paper.

After reviewing your application, the Department will either issue or deny the license. If the Department denies your application, the Department will send you a notice that describes the denial reason and your appeal rights.

The Department may deny a license for any cause listed in NMSA § 59A-11-14. If your application contains inaccurate or untruthful responses, or material omissions, the Department may deny the license and prevent you from being licensed in the future. If the Department issues a license and later discovers that the application was incomplete or contained erroneous, untruthful or materially incomplete information, the Department may fine you or revoke your license. License Expiration When the OSI issues a New Mexico insurance license to someone who does not already hold a license, the initial license term is between 13-24 months and will expire on the licensee birth month. Future renewals will be a full two-year term expiring on the last day of the licensee birth month.

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Maintaining Insurance professionals are responsible for complying with OSI insurance laws and Your License rules, including but not limited to timely reporting changes of address and timely renewing insurance licenses. NIPR: National Insurance Producer Registry You can use the NIPR’s website, at http://www.nipr.com/ to report changes of email, address and telephone information at no charge. License Renewal An insurance professional may renew a license up to 90 days before the date the license expires. The licensee is solely responsible for renewing the license before its expiration. OSI may or may not remind the licensee of the need to renew a license.

You can use NIPR (http://www.nipr.com/) to renew your license online,

More detailed information on license renewals can be found on the Department’s website at: www,osi.state.nm.us Insurance Continuing Education The insurance continuing education requirements that you must satisfy depend upon the type of license you hold, when the license was issued and when the license expires. Specific requirements for each type of license can be found at: www.osi.state.nm.us

Insurance continuing education applies to insurance producers, adjusters, bail bond agents, solicitors and limited surety,

Nonresidents who do not have an insurance continuing education requirement. A nonresident would only be required to complete insurance continuing education if the resident state did not have a continuing education requirement or if New Mexico is the designated home state.

Individuals who only hold a limited-line do not have an insurance continuing education requirement.

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Long-term care training an accident and health or sickness insurance producer (resident or nonresident) who wants to sell, solicit or negotiate long-term care insurance must complete eight hours of approved long-term care training (LTCT) A resident licensee can apply hours of LTCT toward satisfying New Mexico CE requirement. Nonresidents can satisfy the LTCT requirement if they completed substantially similar courses in another state.

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

The following outlines give an overview of the content of For example, 10 percent means that 10 questions will be each of the New Mexico insurance examinations. Each drawn on a 100-question exam and 15 will be drawn on a examination will include questions on the subjects 150-question exam. contained in the outline. The percentages indicate the An outline that includes more descriptive subsections for your relative weight assigned to each section of the exam is available online at examination. www.prometric.com/newmexico/insurance.

Penalties and fines Rebating (59A-16- (59A-1-18, 59A-11- 16–18) New Mexico Examination for 17, 21) Boycott, coercion, or Life Insurance Series 18-25 1.2 State regulation intimidation (59A- 16-19) Superintendent's general 100 questions – 2-hour time limit duties and powers (59A- Examination of books and Effective April 30, 2019 2-8–10) records (59A-4-3, 4)

Company regulation Insurance Fraud Act (59A- 16C-1–16) 1.0 Insurance Regulation 10% Certificate of authority 1.1 Licensing (59A-5-10) Consumer information privacy (59A-2-9.3; Reg Process (59A-11-2, 3, Unfair claim 13.1.3.1–.28) 59A-12-12; Reg settlement practices 13.4.2.8, .9) (59A-16-20) 1.3 Federal regulation

Types of licensees (Reg Complaint record Fair Credit Reporting Act 13.4.2.7, .11) (59A-16-22) (15 USC 1681–1681d)

Insurance Producer Appointment of Fraud and false statements (59A-12-2) Insurance Producer (18 USC 1033, 1034) (59A-11-12; Reg Brokers (59A-12-3) 13.4.2.17) 2.0 General Insurance 10% (10 Items) Consultants (59A- Termination of 2.1 Concepts 11A-1–8) Insurance Producer appointment (59A- Nonresident (59A-12- Risk management key 11-13; Reg 25) (59A-11-24) terms 13.4.2.29) Temporary (59A-11- Risk Insurance Producer 4; 59A-12-19; Reg regulation Exposure 13.4.2.12) Shared commissions Hazard Maintenance and duration (59A-12-24) Peril Expiration and Fiduciary duties (59A- renewal (59A-11- Loss 12-22) 10, 11; Reg Methods of handling risk 13.4.2.17, .18) Prohibited premiums or charges (59A- Avoidance Address change (59A- 16-24) 12-17) (59A-11-24) Retention Unfair trade practices Continuing education Sharing (59A-12-26; Reg Misrepresentation 13.4.7.9, .12) (59A-16-4, 23) Reduction

Disciplinary actions False advertising Transfer (59A-16-4, 5) Suspension, Elements of insurable risks revocation, or Twisting (59A-16-6) Adverse selection refusal to renew Defamation (59A-16- (59A-11-8, 10, 14– Reinsurance 16, 18) 10) 2.2 Insurers Cease and desist Unfair discrimination orders (59A-16-27) (59A-16-12, 13, Types of insurers 17(D))

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Stock companies Representations/misre Solicitation and sales presentations presentations Mutual companies Warranties Advertising Fraternal benefit societies Concealment Prohibited advertising of Life and Health Risk retention groups Fraud Insurance Guaranty Private versus government Waiver and estoppel Association (59A- insurers 42-13(E)) 3.0 Life Insurance Basics 21% Illustrations (Reg Authorized versus (21 Items) unauthorized insurers 13.9.14.10–.31) 3.1 Insurable interest (59A- Domestic, foreign and alien 18-4, 5, 7, 8) Policy summary (Reg insurers 13.9.5.8, .9) 3.2 Personal uses of life Financial status insurance Buyer's guide (Reg (independent rating 13.9.5.9, .14) Survivor protection service) Replacement (Reg Estate creation Marketing (distribution) 13.9.6.5–.15) systems Cash accumulation Use and disclosure of insurance 2.3 Insurance Producers Liquidity and general rules of information Estate conservation agency Field underwriting 3.3 Determining amount of Insurer as principal Notice of information personal life insurance Insurance Producer/insurer practices Human life value approach relationship Application procedures Needs approach Authority and powers of Delivery Insurance Producers Types of information Policy review Express gathered Effective date of Determining lump- Implied coverage sum needs Apparent Premium collection Planning for income Responsibilities to the needs Statement of good applicant/insured health 3.4 Business uses of life 2.4 Contracts insurance including 3.8 Individual underwriting key person Elements of a legal by the insurer contract 3.5 Classes of life insurance Information sources and policies Offer and acceptance regulation Group versus individual Consideration Application Permanent versus term Competent parties Insurance Producer report Participating versus Legal purpose nonparticipating Attending physician Distinct characteristics of statement Fixed versus variable life an insurance contract insurance and annuities Investigative Contract of adhesion consumer Regulation of variable (inspection) report Personal contract products (SEC, FINRA and New Mexico) (59A- Medical Information Unilateral contract 20-30; Reg 13.9.8.38) Bureau (MIB)

Conditional contract 3.6 Premiums Medical examinations and lab tests Legal interpretations Factors in premium affecting contracts determination Selection criteria and unfair discrimination Ambiguities in a Mortality contract of adhesion (59A-16-11) Interest Reasonable Classification of risks Expense expectations Preferred Premium payment mode Indemnity Standard 3.7 Insurance Producer Utmost good faith Substandard responsibilities

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

4.0 Life Insurance Policies 19% Incontestability (59A-20- 5.7 Disability riders (19 Items) 5) Waiver of premium 4.1 Term life insurance Misstatement of age (59A- 20-7) Disability income benefit Level term Exclusions (59A-20-25) Payor benefit life/disability Annual renewable (juvenile insurance) term Settlement of death benefit (59A-20-14) 5.8 Accelerated (living) Level premium term benefit provision/rider Prohibited provisions Decreasing term including backdating Conditions for payment 4.2 Whole life insurance (59A-20-26) Effect on death benefit

Limited payment 5.2 Beneficiaries 5.9 Riders covering additional insureds Single premium Designation options Spouse/other-insured term Modified premium Individuals rider 4.3 Flexible premium Classes Children's term rider policies Estates Family term rider Adjustable life Minors 5.10 Riders affecting the Universal life Trusts death benefit amount 4.4 Specialized policies Succession Accidental death Joint life (first-to-die) Revocable versus Guaranteed insurability Survivorship life (second- irrevocable Cost of living to-die) Common disaster clause Return of premium Juvenile life Spendthrift clause 4.5 Group life insurance 6.0 Annuities 14% (14 Items) 5.3 Settlement options 6.1 Annuity principles and Characteristics of group Cash payment concepts plans Interest only Accumulation period Types of plan sponsors versus annuity period (59A-21-4–8) Fixed-period installments Owner, annuitant and Group underwriting Fixed-amount installments beneficiary requirements Life income Insurance aspects of Conversion to individual annuities policy (59A-21-19–22) Single life 6.2 Immediate versus Joint and survivor Continuation of coverage deferred annuities (59A-21-23) 5.4 Nonforfeiture options Single premium immediate 4.6 Credit life insurance Cash surrender value annuities (SPIAs) (individual versus group) Extended term Deferred annuities

5.0 Life Insurance Policy Reduced paid-up insurance Premium payment

Provisions, Options and options Riders 21% (21 Items) 5.5 Policy loan and withdrawal options Nonforfeiture 5.1 Individual standard provisions Cash loans Surrender charges

Ownership Automatic premium loans Death benefits

Assignment Withdrawals or partial 6.3 Annuity (benefit) surrenders payment options Entire contract (59A-20-6) 5.6 Dividend options Life contingency options Modifications Cash payment Pure life versus life Right to examine (free with guaranteed look) Reduction of premium minimum payments Payment of premiums Single life versus (59A-20-13) Accumulation at interest multiple life Grace period (59A-20-4) One-year term option Annuities certain (types)

Reinstatement (59A-20- Paid-up additions 6.4 Annuity products 12, 16)

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Fixed annuities Annuity phase and the New Mexico Examination for exclusion ratio Accident and Health or General account Sickness Insurance assets Distributions at death Producer Interest rate Corporate-owned Series 18-26 guarantees (minimum versus 7.4 Taxation of individual 100 questions – Two-hour time current) retirement accounts limit (IRAs) Level benefit payment Effective April 30, 2019 Traditional IRAs amount Contributions and Equity indexed annuities 1.0 Insurance Regulation 10% deductible amounts (10 Items) 6.5 Uses of annuities Premature 1.1 Licensing Lump-sum settlements distributions (including taxation Process (59A-11-2, 3, Qualified retirement plans issues) 59A-12-12; Reg including group and 13.4.2.8, .9) individual annuities Annuity phase benefit payments Types of licensees (Reg Personal uses 13.4.2.7, .11) Values included in the Individual retirement annuitant's estate Insurance Producers accounts (IRAs) (59A-12-2) Amounts received by Tax-deferred growth beneficiary Brokers (59A-12-3)

Retirement income Roth IRAs Consultants (59A- 11A-1–8) Education funds Contributions and limits Nonresident (59A-12- 7.0 Federal Tax Considerations 25) (59A-11-24) for Life Insurance and Distributions Annuities 4% (4 Items) Temporary (59A-11- 7.5 Rollovers and transfers 7.1 Taxation of personal life 4; 59A-12-19; Reg (IRAs and qualified insurance 13.4.2.12) plans) Amounts available to Maintenance and duration 7.6 Section 1035 exchanges policyowner Expiration and renewal (59A-11- Cash value increases 8.0 Qualified Plans 1% (1 Item) 10, 11; Reg Dividends 8.1 General requirements 13.4.2.17, .18)

Policy loans 8.2 Federal tax Address change (59A- 12-17) (59A-11-24) Surrenders considerations Tax advantages for Continuing education Amounts received by (59A-12-26; Reg beneficiary employers and employees 13.4.7.9, .12) General rule and Disciplinary actions exceptions Taxation of distributions (age-related) Suspension, Settlement options 8.3 Plan types, revocation, or Values included in characteristics and refusal to renew insured's estate purchasers (59A-11-8, 10, 14– 16, 18) 7.2 Modified endowment Simplified employee contracts (MECs) pensions (SEPs) Cease and desist orders (59A-16-27) Modified endowment Self-employed plans (HR versus life insurance 10 or Keogh plans) Penalties and fines (59A-1-18, 59A-11- Seven-pay test Profit-sharing and 401(k) 17, 21) plans Distributions 1.2 State regulation SIMPLE plans 7.3 Taxation of non- Superintendent's general qualified annuities 403(b) tax-sheltered duties and powers (59A- annuities (TSAs) 2-8–10) Individually-owned Company regulation Accumulation phase (tax issues related Certificate of authority to withdrawals) (59A-5-10)

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Unfair claim Risk Consideration settlement practices (59A-16-20) Exposure Competent parties

Complaint record Hazard Legal purpose (59A-16-22) Peril Distinct characteristics of an insurance contract Appointment of Loss Insurance Producer Contract of adhesion (59A-11-12; Reg Methods of handling risk 13.4.2.17) Personal contract Avoidance Termination of Unilateral contract Insurance Producer Retention Conditional contract appointment (59A- Sharing 11-13; Reg Legal interpretations 13.4.2.29) Reduction affecting contracts Insurance Producer Transfer Ambiguities in a regulation Elements of insurable risks contract of adhesion Shared commissions Adverse selection Reasonable (59A-12-24) expectations Reinsurance Fiduciary duties (59A- Indemnity 12-22) 2.2 Insurers Utmost good faith Prohibited premiums Types of insurers or charges (59A- Representations/misre 16-24) Stock companies presentations

Unfair trade practices Mutual companies Warranties Misrepresentation Fraternal benefit Concealment (59A-16-4, 23) societies Fraud False advertising Risk retention groups Waiver and estoppel (59A-16-4, 5) Private versus government Twisting (59A-16-6) insurers 3.0 Health Insurance Basics 13% (13 Items) Authorized versus Defamation (59A-16- 3.1 Definitions of perils 10) unauthorized insurers Accidental injury Unfair discrimination Domestic, foreign and alien (59A-16-12, 13, insurers Sickness 17(D)) Financial status 3.2 Principal types of losses Rebating (59A-16- (independent rating and benefits 16–18) service) Loss of income from Boycott, coercion, or Marketing (distribution) disability intimidation (59A- systems 16-19) Medical expense 2.3 Insurance Producers Examination of books and and general rules of Dental expense records (59A-4-3, 4) agency Long-term care expense Insurer as principal Insurance Fraud Act (59A- 3.3 Classes of health 16C-1–16) Insurance Producer/insurer insurance policies relationship Consumer information Individual versus group privacy (59A-2-9.3; Reg Authority and powers of 13.1.3.1–.28) Private versus government Insurance Producers 1.3 Federal regulation Limited versus Express comprehensive Fair Credit Reporting Act Implied (15 USC 1681–1681d) 3.4 Limited policies Apparent Fraud and false statements Limited perils and amounts (18 USC 1033, 1034) Responsibilities to the Required notice to insured applicant/insured 2.0 General Insurance 10% Types of limited policies (10 Items) 2.4 Contracts Accident-only 2.1 Concepts Elements of a legal Risk management key contract Specified (dread) disease terms Offer and acceptance

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Hospital indemnity Genetic testing (RL 24-21- 4.3 Other general (income) 3–5) provisions

Credit disability Classification of risks Insuring clause

Blanket insurance Preferred Consideration clause (teams, passengers, other) Standard Renewability clause

Prescription drugs Substandard Noncancelable

Vision care 3.8 Considerations in Guaranteed renewable replacing health 3.5 Common exclusions insurance Conditionally from coverage renewable Pre-existing conditions 3.6 Insurance Producer Renewable at option responsibilities in Benefits, limitations and of insurer exclusions individual health Nonrenewable insurance Underwriting requirements (cancelable, term)

Marketing requirements Insurance Producer liability 5.0 Disability Income and Advertising (Reg for errors and omissions Related Insurance 9% (9 13.10.4.6–.23) Items) 4.0 Individual Health Insurance 5.1 Qualifying for disability Prohibited advertising Policy General Provisions benefits of Life and Health 12% (12 Items) Insurance Guaranty 4.1 Required provisions Inability to perform duties Association (59A- 42-13(E)) Entire contract; changes Own occupation (59A-22-4) Sales presentations Any occupation Time limit on certain Field underwriting defenses; pre-existing Pure loss of income condition exclusions (income replacement Nature and purpose (59A-22-5) contracts) Disclosure of Grace period (59A-22-6) Presumptive disability information about individuals Reinstatement (59A-22-7) Requirement to be under physician care Application procedures Claim procedures (59A- 22-8–12) 5.2 Individual disability Requirements at income insurance delivery of policy Physical examinations and autopsy (59A-22-13) Basic total disability plan Common situations for errors/omissions Legal actions (59A-22-14) Income benefits (monthly indemnity) 3.7 Individual underwriting Change of beneficiary by the insurer (59A-22-15) Elimination and benefit periods Underwriting criteria 4.2 Optional provisions Waiver of premium Sources of underwriting Change of occupation feature information (59A-22-17) Coordination with social Application Misstatement of age (59A- insurance and workers 22-18) compensation benefits Insurance Producer report Other insurance with same Additional monthly insurer (59A-22-19) benefit (AMB) Attending physician statement Other insurance with Social insurance different insurer supplement (SIS) Investigative consumer Expense-incurred Occupational versus (inspection) report benefits (59A-22- nonoccupational 20) coverage Medical Information Bureau (MIB) Other benefits (59A- At-work benefits 22-21) Medical examinations Partial disability and lab tests Unpaid premium (59A-22- benefit (including HIV 23) consent) (RL 24-21- Residual disability 2(c)) Cancellation (59A-22-24) benefit

Unfair discrimination Conformity with state Other provisions affecting (59A-16-11, 12.1, 13.2) statutes (59A-22-25) income benefits

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Cost of living Fee-for-service basis Preventive Care adjustment (COLA) versus prepaid basis vs. Services rider expense basis Maximum out of Future increase option Expense based basis Pocket, (FIO) rider versus indemnity Open Enrollment Loss-of-time benefit Specified coverages versus Period adjustment (59A- comprehensive care 22-22) Preexisting Benefit schedule versus Exclusions Other cash benefits usual/reasonable/custom ary charges Health maintenance Accidental death and organizations (HMOs) dismemberment Any provider versus limited choice of providers General characteristics Rehabilitation benefit Insureds versus Primary care physician Medical subscribers/participants versus referral reimbursement (specialty) physician benefit Qualified Health Plans (nondisabling injury) Hospital services EPOs Refund provisions Other basic services HDHPs Return of premium Preferred provider 6.2 Types of providers and organizations (PPOs) Cash surrender value plans General characteristics Exclusions Limited Benefits Insurance Open panel or closed 5.3 Unique aspects of Indemnity plan panel individual disability features underwriting Types of parties to the Excepted provider contract Occupational Benefits Plans considerations Point-of-service (POS) Hospital plans Benefit limits Indemnity Insurance Nature and purpose Policy issuance alternatives Accident only insurance PCP referral 5.4 Group disability income (gatekeeper PPO) insurance Specified Disease HDHP plans Group versus individual Major medical insurance plans (comprehensive Features and purpose coverage) Short-term disability (STD) Exclusive Provider Characteristics Organization Plans Long-term disability (LTD) Participating vs Non- Features and purpose

5.5 Business disability Participating insurance 6.3 Cost containment in providers health care delivery Key person disability Deductibles, Copay Cost-saving services income and Coinsurance Preventive care Disability buy-sell policy Emergency care

5.6 Social Security Hospital outpatient Preventive Care benefits disability Services Alternatives to Qualification for disability Common limitations benefits hospital services

Provisions affecting Utilization management Definition of disability cost to insured Prospective review Waiting period Qualified Health Plans (QHPs) Concurrent review Disability income benefits 5.7 Workers compensation General Grievance procedures

characteristics Network Adequacy Eligibility EHBs Benefits 6.4 New Mexico eligibility CSR and APTCs requirements and 6.0 Medical Plans 15% (15 benefit offers Special Enrollment Items) (individual and group) Periods 6.1 Medical plan concepts Dependent child age limit 24

N E W M E X (59AI C O- 22O F- F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E 2(C))

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Continued coverage of Welfare Rate and renewability handicapped children Arrangements (59A-23C-6) (59A-22-33) (MEWAs) Pre-existing condition Newborn child coverage Associations (alumni, exclusion (59A-23C-7.1) (59A-22-34) professional, other) 8.0 Dental Insurance 3% (3 Adopted child coverage Customer groups Items) (59A-22-34.1) (depositors, creditor- 8.1 Types of dental debtor, other) Child enrollment; treatment noncustodial parents 7.3 Marketing Diagnostic and preventive (59A-22-34.2) considerations Restorative Home health care coverage Advertising (59A-22-36) Oral surgery Regulatory Managed Health Care Rule jurisdiction/place of Endodontics (Reg 13.10.13.8–.12) delivery Periodontics Mental health parity (59A- 7.4 Employer group health 23E-18) insurance Prosthodontics

Women's health care Insurer underwriting Orthodontics benefits criteria 8.2 Dental plan types Patient Protection Act Characteristics of Indemnity plan features (59A-57-3) group Indemnity vs. expense 6.5 HIPAA (Health Plan design factors based plans Insurance Portability Persistency factors and Accountability Choice of providers Act) requirements Administrative Scheduled versus capability Eligibility nonscheduled plans Eligibility for insurance Guaranteed issue Benefit categories Annual open Pre-existing conditions Diagnostic/preventive enrollment services Creditable coverage Employee eligibility Basic services Renewability Dependent eligibility Major services 6.6 Medical savings Coordination of benefits accounts (MSAs), Deductibles and provision Flexible savings coinsurance accounts (FSAs), Subrogation Health savings Combination plans accounts (HSAs), Change of insurance Exclusions Health reimbursement companies or loss of accounts (HRAs) coverage Limitations Definition Coinsurance and Predetermination of deductible carryover benefits Eligibility No-loss no-gain 8.3 Employer group dental Contribution limits expense Events that terminate 7.0 Group Health Insurance coverage Integrated deductibles 13% (13 Items) versus stand-alone plans Extension of benefits (Reg 7.1 Characteristics of group 13.10.5.10) insurance Minimizing adverse selection Continuation of coverage Group contract under COBRA and New 9.0 Insurance for Senior Citizens Mexico specific rules Certificate of coverage and Special Needs (59A-18-16) Experience rating versus Individuals 12% (12 Items) community rating Conversion privilege (59A- 18-16) 9.1 Medicare 7.2 Types of eligible groups 7.5 Small employer medical Nature, financing and Employment-related plans administration groups Definition of small Part A — Hospital Individual employer employer (59A-23C- insurance groups 3(N)) Individual eligibility Multiple-Employer requirements Trusts (METs) or

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Enrollment 9.3 Other options for 13.10.15.19, .50– individuals with .53) Coverages and cost- Medicare sharing amounts Outline of coverage Employer group health (Reg 13.10.15.45, Part B — Medical insurance plans .46)

Individual eligibility Disabled employees Shoppers guide (Reg requirements 13.10.15.47) Employees with Enrollment kidney failure Right to return (free Coverages and cost- look) (59A-23A- Individuals age 65 and 6(E)) sharing amounts older Exclusions Replacement (Reg Medicaid 13.10.15.25, .42) Claims terminology Eligibility and other key terms Policy standards Benefits (59A-23A-6) Part C — Medicare Advantage 9.4 Long-term care (LTC) Benefit triggers (Reg insurance 13.10.15.44) Part D — Prescription Drug Insurance Eligibility for benefits Pre-existing conditions (59A-23A-7) 9.2 Medicare supplements Levels of care (Reg 13.10.8.6–.78) Inflation protection Skilled care (Reg 13.10.15.24) Purpose Intermediate care Nonforfeiture benefit Open enrollment offer (Reg Custodial care 13.10.15.43) Standardized Medicare supplement plans Home health care Unintentional lapse (Reg 13.10.15.17) Core benefits Adult day care Respite care Penalties (Reg Additional benefits 13.10.15.48) Benefit periods New Mexico regulations 9.5 New Mexico Medical and required provisions Benefit amounts Insurance Pool and Advertising Health Insurance Optional benefits Alliance (59A-54; Reg Standards for Guarantee of 13.10.10.1–.24; Bul marketing insurability 2008-006) Permitted Return of premium Eligibility compensation arrangements Qualified LTC plans Coverages and limits

Suitability for Exclusions Exclusions recommended Deductibles and purchase Underwriting considerations coinsurance

Required disclosure provisions New Mexico regulations 10.0 Federal Tax Considerations and required provisions for Health Insurance 3% Outline of coverage (3 Items) (59A-24A-9) Advertising (59A- 23A-11; Reg 10.1 Personally-owned Right to return (free 13.10.15.36) health insurance look) (59A-24A-10) Standards for Disability income insurance Replacement marketing (Reg Medical expense insurance 13.10.15.36, .49– Benefit standards .53) Long-term care insurance

Pre-existing conditions Prohibited marketing 10.2 Employer group health (59A-24A-4(B)) practices (Reg insurance 13.10.15.38) Guaranteed issue Disability income (STD, Prohibited provisions Suitability of LTD) (59A-24A-4) recommended purchase (Reg Medical and dental Medicare SELECT (Reg 13.10.15.40, .52) expense 13.10.8.26) Required disclosure Long-term care insurance provisions (Reg Accidental death and dismemberment

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

10.3 Medical expense Suspension, Examination of books and coverage for sole revocation, or records (59A-4-3, 4) proprietors and refusal to renew partners (59A-11-8, 10, 14– Insurance Fraud Act (59A- 16, 18) 16C-1–16) 10.4 Business disability insurance Cease and desist Consumer information orders (59A-16-27) privacy (59A-2-9.3; Reg Key person disability 13.1.3.1–.28) income Penalties and fines (59A-1-18, 59A-11- 1.3 Federal regulation Buy-sell policy 17, 21) Fair Credit Reporting Act 10.5 Medical savings 1.2 State regulation (15 USC 1681–1681d) accounts (MSAs), Flexible spending Superintendent's general Fraud and false statements accounts (FSAs), duties and powers (59A- (18 USC 1033, 1034)

Health savings 2-8–10) 2.0 General Insurance 5% (8 accounts (HSAs), Items) Health reimbursement Company regulation 2.1 Concepts accounts (HRAs) Certificate of authority (59A-5-10) Risk management key terms Unfair claim New Mexico Examination for Life, settlement practices Accident and Health or Risk (59A-16-20) Sickness Insurance Exposure Producer Complaint record Series 18-27 (59A-16-22) Hazard

150 questions – 2.5-hour time Appointment of Peril limit Insurance Producer Loss (59A-11-12; Reg Effective April 30, 2019 13.4.2.17) Methods of handling risk

Termination of Avoidance Insurance Producer 1.0 Insurance Regulation 5% (8 Items) appointment (59A- Retention 11-13; Reg 1.1 Licensing Sharing 13.4.2.29) Process (59A-11-2, 3, Reduction Insurance Producer 59A-12-12; Reg regulation 13.4.2.8, .9) Transfer Shared commissions Types of licensees (Reg Elements of insurable risks (59A-12-24) 13.4.2.7, .11) Adverse selection Fiduciary duties (59A- Insurance Producers 12-22) Reinsurance (59A-12-2) Prohibited premiums 2.2 Insurers Brokers (59A-12-3) or charges (59A- Types of insurers Consultants (59A- 16-24) 11A-1–8) Stock companies Unfair trade practices Nonresident (59A-12- Mutual companies Misrepresentation 25) (59A-11-24) (59A-16-4, 23) Fraternal benefit Temporary (59A-11- societies False advertising 4; 59A-12-19; Reg (59A-16-4, 5) Risk retention groups 13.4.2.12) Twisting (59A-16-6) Private versus government Maintenance and duration insurers Defamation (59A-16- Expiration and 10) renewal (59A-11- Authorized versus unauthorized insurers 10, 11; Reg Unfair discrimination 13.4.2.17, .18) (59A-16-12, 13, Domestic, foreign and alien 17(D)) Address change (59A- insurers 12-17) (59A-11-24) Rebating (59A-16- Financial status 16–18) Continuing education (independent rating service) (59A-12-26; Reg Boycott, coercion, or 13.4.7.9, .12) intimidation (59A- Marketing (distribution) 16-19) systems Disciplinary actions

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

2.3 Insurance Producers Liquidity Use and disclosure of and general rules of insurance agency Estate conservation information

Insurer as principal 3.3 Determining amount of Field underwriting personal life insurance Insurance Producer/insurer Notice of information relationship Human life value approach practices

Authority and powers of Needs approach Application procedures Insurance Producers Types of information Delivery Express gathered Policy review Implied Determining lump- sum needs Effective date of Apparent coverage Planning for income Responsibilities to the needs Premium collection applicant/insured 3.4 Business uses of life Statement of good 2.4 Contracts insurance including health key person Elements of a legal 3.8 Individual underwriting contract 3.5 Classes of life insurance by the insurer policies Offer and acceptance Information sources and Group versus individual regulation Consideration Permanent versus term Application Competent parties Participating versus Insurance Producer Legal purpose nonparticipating report

Distinct characteristics of Fixed versus variable life Attending physician an insurance contract insurance and annuities statement

Contract of adhesion Regulation of variable Investigative Personal contract products (SEC, FINRA consumer and New Mexico) (59A- (inspection) report Unilateral contract 20-30; Reg 13.9.8.38) Medical Information Conditional contract 3.6 Premiums Bureau (MIB) Legal interpretations Factors in premium Medical examinations affecting contracts determination and lab tests

Ambiguities in a Mortality Selection criteria and contract of adhesion unfair discrimination Interest (59A-16-11) Reasonable expectations Expense Classification of risks

Indemnity Premium payment mode Preferred Utmost good faith 3.7 Insurance Producer Standard responsibilities Representations/misre Substandard presentations Solicitation and sales presentations 4.0 Life Insurance Policies 11% Warranties (16 Items) Advertising Concealment 4.1 Term life insurance Prohibited advertising Fraud of Life and Health Level term Insurance Guaranty Waiver and estoppel Annual renewable Association (59A- term 42-13(E)) 3.0 Life Insurance Basics 10% Level premium term (15 Items) Illustrations (Reg 3.1 Insurable interest (59A- 13.9.14.10–.31) Decreasing term 18-4, 5, 7, 8) Policy summary (Reg 4.2 Whole life insurance 3.2 Personal uses of life 13.9.5.8, .9) insurance Limited payment Buyer's guide (Reg Survivor protection 13.9.5.9, .14) Single premium Estate creation Replacement (Reg Modified premium 13.9.6.5–.15) Cash accumulation 4.3 Flexible premium policies

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Adjustable life Estates Family term rider

Universal life Minors 5.10 Riders affecting the death benefit amount 4.4 Specialized policies Trusts Accidental death Joint life (first-to-die) Succession Guaranteed insurability Survivorship life (second- Revocable versus to-die) irrevocable Cost of living

Juvenile life Common disaster clause Return of premium

4.5 Group life insurance Spendthrift clause 6.0 Annuities 8% (11 Items) Characteristics of group 5.3 Settlement options 6.1 Annuity principles and plans concepts Cash payment Types of plan sponsors Accumulation period (59A-21-4–8) Interest only versus annuity period Group underwriting Fixed-period installments Owner, annuitant and beneficiary requirements Fixed-amount installments Conversion to individual Life income Insurance aspects of policy (59A-21-19–22) annuities Single life Continuation of coverage 6.2 Immediate versus (59A-21-23) Joint and survivor deferred annuities

4.6 Credit life insurance 5.4 Nonforfeiture options Single premium immediate (individual versus annuities (SPIAs) group) Cash surrender value Deferred annuities Extended term 5.0 Life Insurance Policy Premium payment Provisions, Options and Reduced paid-up insurance options Riders 12% (18 Items) 5.5 Policy loan and 5.1 Individual standard Nonforfeiture withdrawal options provisions Surrender charges Cash loans Ownership Death benefits Automatic premium loans Assignment 6.3 Annuity (benefit) Withdrawals or partial Entire contract (59A-20-6) payment options surrenders Modifications Life contingency options 5.6 Dividend options Right to examine (free Pure life versus life Cash payment look) with guaranteed Reduction of premium minimum Payment of premiums payments (59A-20-13) Single life versus Accumulation at interest multiple life Grace period (59A-20-4) One-year term option Annuities certain (types) Reinstatement (59A-20- 12, 16) Paid-up additions 6.4 Annuity products

Incontestability (59A-20- 5.7 Disability riders Fixed annuities 5) Waiver of premium General account Misstatement of age (59A- assets Disability income benefit 20-7) Interest rate Exclusions (59A-20-25) Payor benefit life/disability guarantees (juvenile insurance) (minimum versus Settlement of death current) benefit (59A-20-14) 5.8 Accelerated (living) benefit provision/rider Level benefit payment Prohibited provisions amount including backdating Conditions for payment Equity indexed annuities (59A-20-26) Effect on death benefit 6.5 Uses of annuities 5.2 Beneficiaries 5.9 Riders covering Designation options additional insureds Lump-sum settlements Individuals Spouse/other-insured term Qualified retirement plans rider including group and Classes individual annuities Children's term rider

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Personal uses Values included in the 9.4 Limited policies annuitant's estate Individual retirement Limited perils and amounts accounts (IRAs) Amounts received by beneficiary Required notice to insured Tax-deferred growth Roth IRAs Types of limited policies Retirement income Contributions and Accident-only Education funds limits Specified (dread) 7.0 Federal Tax Considerations Distributions disease for Life Insurance and 7.5 Rollovers and transfers Hospital indemnity Annuities 3% (4 Items) (IRAs and qualified (income) 7.1 Taxation of personal life plans) insurance Credit disability 7.6 Section 1035 exchanges Amounts available to Blanket insurance (teams, passengers, policyowner 8.0 Qualified Plans 1% (1 other) Cash value increases Items) 8.1 General requirements Prescription drugs Dividends 8.2 Federal tax Vision care Policy loans considerations 9.5 Common exclusions Surrenders Tax advantages for from coverage employers and Amounts received by 9.6 Insurance Producer employees beneficiary responsibilities in individual health General rule and Taxation of distributions insurance exceptions (age-related) Marketing requirements Settlement options 8.3 Plan types, characteristics and Advertising (Reg Values included in purchasers 13.10.4.6–.23) insured's estate Simplified employee Prohibited advertising 7.2 Modified endowment pensions (SEPs) of Life and Health contracts (MECs) Self-employed plans (HR Insurance Guaranty Modified endowment 10 or Keogh plans) Association (59A- versus life insurance 42-13(E)) Profit-sharing and 401(k) Seven-pay test plans Sales presentations

Distributions SIMPLE plans Field underwriting 7.3 Taxation of non- 403(b) tax-sheltered Nature and purpose qualified annuities annuities (TSAs) Disclosure of

Individually-owned information about 9.0 Health Insurance Basics 7% (11 Items) individuals Accumulation phase (tax issues related 9.1 Definitions of perils Application procedures to withdrawals) Accidental injury Requirements at Annuity phase and the delivery of policy Sickness exclusion ratio Common situations for 9.2 Principal types of losses Distributions at death errors/omissions and benefits Corporate-owned 9.7 Individual underwriting Loss of income from by the insurer 7.4 Taxation of individual disability retirement accounts Underwriting criteria Medical expense (IRAs) Sources of underwriting Dental expense Traditional IRAs information Long-term care expense Contributions and Application deductible amounts 9.3 Classes of health Insurance Producer insurance policies Premature report distributions Individual versus group Attending physician (including taxation statement issues) Private versus government Investigative Annuity phase benefit Limited versus consumer payments comprehensive (inspection) report

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Medical Information Expense-incurred Occupational versus Bureau (MIB) benefits (59A-22- nonoccupational 20) coverage Medical examinations and lab tests Other benefits (59A- At-work benefits (including HIV 22-21) consent) (RL 24-21- Partial disability 2(c)) Unpaid premium (59A-22- benefit 23) Unfair discrimination Residual disability (59A-16-11, 12.1, 13.2) Cancellation (59A-22-24) benefit

Genetic testing (RL 24-21- Conformity with state Other provisions affecting 3–5) statutes (59A-22-25) income benefits

Classification of risks 10.3 Other general Cost of living provisions adjustment (COLA) Preferred rider Insuring clause Standard Future increase option Consideration clause (FIO) rider Substandard Renewability clause Loss-of-time benefit 9.8 Considerations in Noncancelable adjustment (59A- replacing health 22-22) insurance Guaranteed renewable Other cash benefits Pre-existing conditions Conditionally renewable Accidental death and Benefits, limitations and dismemberment exclusions Renewable at option Rehabilitation benefit Underwriting requirements of insurer Nonrenewable Medical Insurance Producer liability reimbursement for errors and omissions (cancelable, term) benefit (nondisabling injury) 10.0 Individual Health Insurance 11.0 Disability Income and Related Insurance 5% (8 Policy General Provisions Refund provisions 7% (11 Items) Items) Return of premium 10.1 Required provisions 11.1 Qualifying for disability benefits Cash surrender value Entire contract; changes Inability to perform duties (59A-22-4) Exclusions Own occupation Time limit on certain 11.3 Unique aspects of defenses; pre-existing Any occupation individual disability condition exclusions underwriting (59A-22-5) Pure loss of income (income replacement Occupational Grace period (59A-22-6) contracts) considerations

Reinstatement (59A-22-7) Presumptive disability Benefit limits Claim procedures (59A- Requirement to be under Policy issuance alternatives 22-8–12) physician care 11.4 Group disability Physical examinations and 11.2 Individual disability income insurance autopsy (59A-22-13) income insurance Group versus individual Legal actions (59A-22-14) Basic total disability plan plans Change of beneficiary Income benefits Short-term disability (STD) (59A-22-15) (monthly indemnity) Long-term disability (LTD) 10.2 Optional provisions Elimination and 11.5 Business disability benefit periods Change of occupation insurance (59A-22-17) Waiver of premium Key person disability feature Misstatement of age (59A- income 22-18) Coordination with social Disability buy-sell policy Other insurance with same insurance and workers insurer (59A-22-19) compensation benefits 11.6 Social Security disability Other insurance with Additional monthly different insurer benefit (AMB) Qualification for disability benefits Social insurance supplement (SIS) Definition of disability

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Waiting period Qualified Health Plans (QHPs) Network Adequacy

Disability income benefits General characteristics 12.4 New Mexico eligibility requirements and 11.7 Workers compensation EHBs benefit offers Eligibility CSR and APTCs (individual and group)

Benefits Special Enrollment Periods Dependent child age limit (59A-22-2(C)) 12.0 Medical Plans 9% (14 Preventive Care Services Continued coverage of Items) Maximum out of Pocket, handicapped children 12.1 Medical plan concepts (59A-22-33) Open Enrollment Period Fee-for-service basis Newborn child coverage versus prepaid basis vs. Preexisting Exclusions (59A-22-34) expense basis Health maintenance organizations Adopted child coverage Expense based basis (HMOs) (59A-22-34.1) versus indemnity General characteristics Child enrollment; Specified coverages versus Primary care physician noncustodial parents comprehensive care versus referral (59A-22-34.2) Benefit schedule versus (specialty) physician Home health care coverage usual/reasonable/custom Emergency care (59A-22-36) ary charges Hospital services Managed Health Care Rule Any provider versus limited (Reg 13.10.13.8–.12) choice of providers Other basic services Mental health parity (59A- Insureds versus Preferred provider 23E-18) subscribers/participants organizations (PPOs) Women's health care Qualified Health Plans General characteristics benefits

EPOs Open panel or closed Patient Protection Act panel (59A-57-3) HDHPs Types of parties to the 12.5 HIPAA (Health 12.2 Types of providers and provider contract Insurance Portability plans and Accountability Point-of-service (POS) Limited Benefits Insurance Act) requirements plans Indemnity plan Eligibility Nature and purpose features Guaranteed issue PCP referral Excepted Benefits (gatekeeper PPO) Pre-existing conditions Plans HDHP plans Creditable coverage Hospital Indemnity Insurance Features and purpose Renewability

Accident only Exclusive Provider 12.6 Medical savings insurance Organization Plans accounts (MSAs), Flexible savings Specified Disease Features and purpose accounts (FSAs), Major medical insurance Indemnity plan Health savings (Comprehensive features accounts (HSAs), Insurance) Health reimbursement 12.3 Cost containment in accounts (HRAs) Characteristics health care delivery Definition Participating vs Non- Cost-saving services Participating Eligibility providers Preventive care Contribution limits Deductibles, Copay Hospital outpatient and Coinsurance benefits 13.0 Group Health Insurance 6% (9 Items) Emergency care Alternatives to hospital services 13.1 Characteristics of Preventive Care group insurance Services Utilization management Group contract Prospective review Common limitations Certificate of coverage Concurrent review Provisions affecting Experience rating versus cost to insured Grievance procedures community rating

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

13.2 Types of eligible Conversion privilege (59A- Nature, financing and groups 18-16) administration

Employment-related 13.5 Small employer Part A — Hospital groups medical plans insurance

Individual employer Definition of small Individual eligibility groups employer (59A-23C- requirements 3(N)) Multiple-Employer Enrollment Trusts (METs) or Rate and renewability Welfare (59A-23C-6) Coverages and cost- Arrangements sharing amounts (MEWAs) Pre-existing condition exclusion (59A-23C-7.1) Part B — Medical insurance Associations (alumni, Individual eligibility 14.0 Dental Insurance 2% (3 professional, other) requirements Items) Customer groups 14.1 Types of dental Enrollment (depositors, creditor- treatment debtor, other) Coverages and cost- Diagnostic and preventive sharing amounts 13.3 Marketing considerations Restorative Exclusions

Advertising Oral surgery Claims terminology and other key terms Regulatory Endodontics jurisdiction/place of Part C — Medicare delivery Periodontics Advantage

13.4 Employer group health Prosthodontics Part D — Prescription Drug insurance Insurance Orthodontics Insurer underwriting 15.2 Medicare supplements 14.2 Dental plan types criteria (Reg 13.10.8.6-.78) Indemnity plan features Characteristics of Purpose group Indemnity vs. expense Open enrollment based plans Plan design factors Standardized Medicare Choice of providers Persistency factors supplement plans Scheduled versus Administrative Core benefits nonscheduled plans capability Additional benefits Benefit categories Eligibility for insurance New Mexico regulations Diagnostic/preventive Annual open and required provisions services enrollment Advertising Basic services Employee eligibility Standards for Major services Dependent eligibility marketing Deductibles and Coordination of benefits Permitted coinsurance provision compensation Combination plans arrangements Subrogation Exclusions Suitability for Change of insurance recommended companies or loss of Limitations purchase coverage Predetermination of Required disclosure Coinsurance and benefits provisions deductible carryover 14.3 Employer group dental Outline of coverage No-loss no-gain expense (59A-24A-9)

Events that terminate Integrated deductibles Right to return (free coverage versus stand-alone plans look) (59A-24A-10)

Extension of benefits (Reg Minimizing adverse Replacement 13.10.5.10) selection Benefit standards Continuation of coverage 15.0 Insurance for Senior under COBRA and New Citizens and Special Needs Pre-existing conditions Mexico specific rules Individuals 6% (9 Items) (59A-24A-4(B)) (59A-18-16) 15.1 Medicare Guaranteed issue

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Prohibited provisions purchase (Reg Long-term care insurance (59A-24A-4) 13.10.15.40, .52) Accidental death and Medicare SELECT (Reg Required disclosure dismemberment 13.10.8.26) provisions (Reg 13.10.15.19, .50– 16.3 Medical expense 15.3 Other options for .53) coverage for sole individuals with proprietors and Medicare Outline of coverage partners (Reg 13.10.15.45, Employer group health .46) 16.4 Business disability plans insurance Shoppers guide (Reg Disabled employees 13.10.15.47) Key person disability income Employees with Right to return (free kidney failure look) (59A-23A- Buy-sell policy Individuals age 65 and 6(E)) 16.5 Medical savings older Replacement (Reg accounts (MSAs), 13.10.15.25, .42) Flexible spending Medicaid accounts (FSAs), Eligibility Policy standards Health savings (59A-23A-6) accounts (HSAs), Benefits Health reimbursement Benefit triggers (Reg accounts (HRAs) 15.4 Long-term care (LTC) 13.10.15.44) insurance Pre-existing conditions Eligibility for benefits (59A-23A-7) Levels of care Inflation protection New Mexico Examination for (Reg 13.10.15.24) Property Insurance Skilled care Producer Nonforfeiture benefit Series 18-28 Intermediate care offer (Reg Custodial care 13.10.15.43) 100 questions – Two-hour time limit Home health care Unintentional lapse (Reg 13.10.15.17) Adult day care Penalties (Reg 1.0 Insurance Regulation 6% Respite care 13.10.15.48) (6 Items) Benefit periods 15.5 New Mexico Medical 1.1 Licensing Insurance Pool and Benefit amounts Process (59A-11-2, 3, Health Insurance 59A-12-12; Reg Optional benefits Alliance (59A-54; Reg 13.4.2.8, .9) 13.10.10.1–.24; Bul Guarantee of 2008-006) Types of licensees (Reg insurability 13.4.2.7, .11) Eligibility Return of premium Insurance Producers Coverages and limits (59A-12-2) Qualified LTC plans Exclusions Brokers (59A-12-3) Exclusions Deductibles and Consultants (59A- Underwriting coinsurance 11A-1–8) considerations 16.0 Federal Tax Considerations Nonresident (59A-12- New Mexico regulations for Health Insurance 3% 25) (59A-11-24) and required provisions (4 Items) Temporary (59A-11- Advertising (59A- 16.1 Personally-owned 4; 59A-12-19; Reg 23A-11; Reg health insurance 13.4.2.12) 13.10.15.36) Disability income insurance Maintenance and duration Standards for Medical expense insurance marketing (Reg Expiration and 13.10.15.36, .49– Long-term care insurance renewal (59A-11- .53) 10, 11; Reg 16.2 Employer group health 13.4.2.17, .18) Prohibited marketing insurance practices (Reg Address change (59A- 13.10.15.38) Disability income (STD, 12-17) (59A-11-24) LTD) Suitability of Continuing education recommended Medical and dental (59A-12-26; Reg expense 13.4.7.9, .12)

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Disciplinary actions Examination of books and 2.3 Insurance Producers records (59A-4-3, 4) and general rules of Suspension, agency revocation, or Insurance Fraud Act (59A- refusal to renew 16C-1–16) Insurer as principal (59A-11-8, 10, 14– 16, 18) Consumer information Insurance Producer/insurer privacy (59A-2-9.3; Reg relationship Cease and desist 13.1.3.1–.28) orders (59A-16-27) Authority and powers of 1.3 Federal regulation Insurance Producers Penalties and fines (59A-1-18, 59A-11- Fair Credit Reporting Act Express (15 USC 1681–1681d) 17, 21) Implied 1.2 State regulation Fraud and false statements (18 USC 1033, 1034) Apparent Superintendent's general Responsibilities to the 2.0 General Insurance 13% duties and powers (59A- applicant/insured 2-8–10) (13 Items) 2.1 Concepts 2.4 Contracts Company regulation Risk management key Elements of a legal Certificate of authority terms contract (59A-5-10) Risk Offer and acceptance Unfair claim settlement practices Exposure Consideration (59A-16-20) Hazard Competent parties Complaint record (59A-16-22) Peril Legal purpose

Appointment of Loss Distinct characteristics of Insurance Producer an insurance contract Methods of handling risk (59A-11-12; Reg Contract of adhesion 13.4.2.17) Avoidance Personal contract Termination of Retention Insurance Producer Unilateral contract appointment (59A- Sharing 11-13; Reg Conditional contract Reduction 13.4.2.29) Legal interpretations Transfer Insurance Producer affecting contracts regulation Elements of insurable risks Ambiguities in a contract of adhesion Shared commissions Adverse selection (59A-12-24) Reasonable Reinsurance Fiduciary duties (59A- expectations 2.2 Insurers 12-22) Indemnity Types of insurers Prohibited premiums Utmost good faith or charges (59A- Stock companies 16-24) Representations/misre Mutual companies presentations Unfair trade practices Fraternal benefit Warranties Misrepresentation societies (59A-16-4, 23) Concealment Risk retention groups False advertising Fraud (59A-16-4, 5) Private versus government Waiver and estoppel insurers Twisting (59A-16-6) Authorized versus 3.0 Property Insurance Basics Defamation (59A-16- unauthorized insurers 18% (18 Items) 10) 3.1 Principles and concepts Domestic, foreign and alien Unfair discrimination insurers Insurable interest (59A-16-12, 13, 17(D)) Financial status Underwriting (independent rating Rebating (59A-16- service) Function 16–18) Marketing (distribution) Loss ratio Boycott, coercion, or systems intimidation (59A- Rates 16-19) Types

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Components Coinsurance Coverage E — Additional living expense Hazards Vacancy or unoccupancy Other coverages Physical Named insured provisions 4.4 General exclusions Moral Duties after loss 4.5 Conditions Morale Abandonment 4.6 Selected endorsements Causes of loss (perils) Insurer provisions Special provisions — New Named perils versus Liberalization Mexico (DP 01 30) special (open) perils Subrogation Automatic increase in Direct loss Salvage insurance (DP 04 11) Consequential or indirect Dwelling under loss Claim settlement options construction (DP 11 43) Blanket versus specific Third-party provisions 4.7 Personal liability insurance supplement

Basic types of construction Standard mortgage clause 5.0 Homeowners Policy 22% Loss valuation (22 Items) Loss payable clause 5.1 Coverage forms Actual cash value 3.4 New Mexico laws, HO-2 through HO-6 Replacement cost regulations and required provisions HO-8 Market value New Mexico Property and 5.2 Definitions Agreed value Casualty Insurance 5.3 Section I — Property Stated amount Guaranty Fund (59A-43- 1–18) coverages Valued policy Cancellation and Coverage A — Dwelling 3.2 Policy structure nonrenewal (59A-18-29; Coverage B — Other Reg 13.8.4.8, .9) Declarations structures Binders (59A-18-22) Definitions Coverage C — Personal Arbitration (RL 44-7A-7) property Insuring agreement or clause Loss payment (59A-16- Coverage D — Loss of use 21) Additional/supplementary Additional coverages coverage Federal Terrorism 5.4 Perils insured against Insurance Program (15 Conditions USC 6701; Public Law 5.5 Exclusions Exclusions 107-297, 109–144, 110– 160) Endorsements 5.6 Conditions 4.0 Dwelling Policy 7% (7 3.3 Common policy Items) 5.7 Selected endorsements provisions 4.1 Characteristics and Special provisions — New Insureds — named, first purpose Mexico (HO 01 30) named, additional 4.2 Coverage forms — Perils Limited fungi, wet or dry Policy period insured against rot, or bacteria coverage (HO 04 26, HO 04 27) Policy territory Basic Permitted incidental Cancellation and Broad occupancies (HO 04 42) nonrenewal Special Earthquake (HO 04 54) Deductibles 4.3 Property coverages Scheduled personal Other insurance Coverage A — Dwelling property (HO 04 61) Nonconcurrency Coverage B — Other Personal property Primary and excess structures replacement cost (HO 04 90) Pro rata Coverage C — Personal property Home day care (HO 04 Policy limits 97) Coverage D — Fair rental Restoration/nonreduction value 6.0 Commercial Package Policy of limits (CPP) 18% (18 Items)

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

6.1 Components of a Equipment dealers 7.0 Businessowners Policy — commercial policy Property 10% (10 Items) Installation floater Common policy 7.1 Characteristics and declarations Jewelers block purpose

Common policy conditions Signs 7.2 Businessowners Section I — Property One or more coverage Valuable papers and parts records Coverage

6.2 Commercial property Transportation coverages Exclusions ('07) Common carrier cargo Limits of insurance Commercial property liability Deductibles conditions form Motor truck cargo Loss conditions Coverage forms forms General conditions Building and personal Transit coverage forms property Optional coverages 6.4 Equipment breakdown Condominium Definitions association ('08) 7.3 Businessowners Section Equipment breakdown Condominium III — Common Policy protection coverage form commercial unit- Conditions owners (EB 00 20) 7.4 Selected endorsements Builders risk Selected endorsement Protective safeguards (BP Actual cash value (EB Business income 04 30) 99 59) Legal liability 6.5 Farm coverage 8.0 Other Coverages and Options Extra expense 6% (6 Items) Farm property coverages 8.1 National Flood Causes of loss forms ('03) Insurance Program Coverage A — Basic "Write your own" versus Dwellings Broad government Coverage B — Other Eligibility Special private structures Coverage Selected endorsements Coverage C — Ordinance or law (CP Household personal Limits 04 05) property Deductibles Spoilage (CP 04 40) Coverage D — Loss of use 8.2 Other policies Peak season limit of Boatowners insurance (CP 12 Coverage E — 30) Scheduled farm Difference in conditions personal property Value reporting form 8.3 FAIR plan act (59A-29- (CP 13 10) Coverage F — 1–7, 9; Reg 13.13.3.1– Unscheduled farm .11) 6.3 Commercial inland personal property marine Coverage G — Other Nationwide marine farm structures

definition Livestock coverage form New Mexico Examination for Commercial inland marine Casualty Insurance Mobile agricultural conditions form Series 18-29 machinery and Inland marine coverage equipment coverage 100 questions – Two-hour time forms form limit Accounts receivable Causes of loss (basic, Effective April 30, 2019 broad and special) Bailee's customer Exclusions Commercial articles 1.0 Insurance Regulation 4% Additional coverages (4 Items) Contractors equipment floater Limits of insurance 1.1 Licensing

Electronic data Conditions Process (59A-11-2, 3, processing 59A-12-12; Reg Definitions 13.4.2.8, .9)

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Types of licensees (Reg Shared commissions Adverse selection 13.4.2.7, .11) (59A-12-24) Reinsurance Insurance Producers Fiduciary duties (59A- (59A-12-2) 12-22) 2.2 Insurers

Brokers (59A-12-3) Prohibited premiums Types of insurers or charges (59A- Stock companies Consultants (59A- 16-24) 11A-1–8) Mutual companies Unfair trade practices Nonresident (59A-12- Fraternal benefit 25) (59A-11-24) Misrepresentation societies (59A-16-4, 23) Temporary (59A-11- Risk retention groups 4; 59A-12-19; Reg False advertising 13.4.2.12) (59A-16-4, 5) Private versus government insurers Maintenance and duration Twisting (59A-16-6) Authorized versus Expiration and Defamation (59A-16- unauthorized insurers renewal (59A-11- 10) 10, 11; Reg Domestic, foreign and alien 13.4.2.17, .18) Unfair discrimination insurers (59A-16-12, 13, Address change (59A- 17(D)) Financial status 12-17) (59A-11-24) (independent rating Rebating (59A-16- service) Continuing education 16–18) (59A-12-26; Reg Marketing (distribution) 13.4.7.9, .12) Boycott, coercion, or systems intimidation (59A- Disciplinary actions 16-19) 2.3 Insurance Producers and general rules of Suspension, Examination of books and agency revocation, or records (59A-4-3, 4) refusal to renew Insurer as principal (59A-11-8, 10, 14– Insurance Fraud Act (59A- 16, 18, 19) 16C-1–16) Insurance Producer/insurer relationship Cease and desist Consumer information orders (59A-16-27) privacy (59A-2-9.3; Reg Authority and powers of 13.1.3.1–.28) Insurance Producers Penalties and fines (59A-1-18, 59A-11- 1.3 Federal regulation Express 17, 21) Fair Credit Reporting Act Implied (15 USC 1681–1681d) 1.2 State regulation Apparent Superintendent's general Fraud and false statements (18 USC 1033, 1034) Responsibilities to the duties and powers (59A- applicant/insured 2-8–10) 2.0 General Insurance 8% (8 2.4 Contracts Company regulation Items) 2.1 Concepts Elements of a legal Certificate of authority contract (59A-5-10) Risk management key terms Offer and acceptance Unfair claim settlement practices Risk Consideration (59A-16-20) Exposure Competent parties Complaint record (59A-16-22) Hazard Legal purpose

Appointment of Peril Distinct characteristics of Insurance Producer an insurance contract Loss (59A-11-12; Reg Contract of adhesion 13.4.2.17) Methods of handling risk Personal contract Termination of Avoidance Insurance Producer Unilateral contract appointment (59A- Retention Conditional contract 11-13; Reg Sharing 13.4.2.29) Legal interpretations Reduction affecting contracts Insurance Producer regulation Transfer Ambiguities in a contract of adhesion Elements of insurable risks

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Reasonable 3.3 Common policy 4.0 Homeowners Policy 16% expectations provisions (16 Items) Indemnity Insureds — named, first 4.1 Coverage forms named, additional Utmost good faith HO-2 through HO-6 Policy period Representations/misre HO-8 presentations Policy territory 4.2 Definitions Warranties Cancellation and 4.3 Section II — Liability nonrenewal Concealment coverages Deductibles Fraud Coverage E — Personal Other insurance liability Waiver and estoppel Nonconcurrency Coverage F — Medical 3.0 Casualty Insurance Basics payments to others 15% (15 Items) Primary and excess Additional coverages 3.1 Principles and concepts Pro rata 4.4 Exclusions Insurable interest Contribution by equal shares 4.5 Conditions Underwriting Limits of liability 4.6 Selected endorsements Function Per occurrence Special provisions — New Loss ratio (accident) Mexico (HO 01 30) Rates Per person Limited fungi, wet or dry Types rot, or bacteria coverage Aggregate — general (HO 04 26, HO 04 27) Components versus products — completed Permitted incidental Hazards operations occupancies (HO 04 42)

Physical Split Home day care (HO 04 97) Moral Combined single Business pursuits (HO 24 Morale Named insured provisions 71) Negligence Duties after loss Watercraft (HO 24 75) Elements of a Assignment Personal injury (HO 24 negligent act 82) Abandonment Defenses against negligence Insurer provisions 5.0 Auto Insurance 18% (18 Items) Liberalization Damages 5.1 Laws Subrogation Compensatory — New Mexico Mandatory special versus Duty to defend Financial Responsibility general Act and required limits of 3.4 New Mexico laws, Punitive liability (RL 66-5-201– regulations and 239) Absolute liability required provisions New Mexico Motor Vehicle Strict liability New Mexico Property and Assigned Risks Law Casualty Insurance (59A-32-1–13) Vicarious liability Guaranty Fund (59A-43- 1–18) Uninsured/underinsured 3.2 Policy structure motorist (RL 66-5-301; Cancellation and Declarations Reg 13.12.3.1–.17) nonrenewal (59A-18-29; Definitions Reg 13.8.4.8, .9) Definitions

Insuring agreement or Binders (59A-18-22) Bodily injury clause Arbitration (RL 44-7A-7) Property damage Additional/supplementary Loss payment (59A-16- Stacked and non- coverage 21) stacked Conditions Federal Terrorism UM/UIM rejection Insurance Program (15 Exclusions Required limits USC 6701; Public Law Endorsements 107-297, 109–144, 110– 160)

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Cancellation/nonrenewal Garagekeepers Extended reporting (59A-17-7.1; 59A-18- coverage periods — basic 29; Reg 13.8.4.8, .9) versus supplemental Physical damage Grounds coverage Premises and operations

Notice Exclusions Products and completed operations Aftermarket crash parts Conditions (RR 12.2.6.12) Insured contract Definitions 5.2 Personal ('05) auto 6.3 Commercial crime ('06) policy Selected endorsements General definitions Definitions Lessor — additional insured and loss Burglary Liability coverage payee (CA 20 01) Theft Bodily injury and Mobile equipment (CA property damage 20 15) Robbery Supplementary Auto medical Crime coverage forms payments payments coverage Commercial crime (CA 99 03) Exclusions coverage forms Drive other car (discovery/loss Medical payments coverage (CA 99 sustained) coverage 10) Government crime Uninsured motorist Individual named coverage forms coverage insured (CA 99 17) (discovery/loss sustained) Coverage for damage to 6.0 Commercial Package Policy your auto Coverages (CPP) 15% (15 Items) Collision 6.1 Components of a Employee theft commercial policy Other than collision Forgery or alteration Common policy Deductibles Inside the premises — declarations theft of money and Transportation Common policy conditions securities expenses One or more coverage Inside the premises — Exclusions parts robbery or safe Duties after an accident or burglary of other 6.2 Commercial general loss property liability ('07) General provisions Outside the premises Commercial general Selected endorsements liability coverage forms Computer fraud Towing and labor Bodily injury and Funds transfer fraud property damage costs (PP 03 03) Money orders and liability Limited Mexico counterfeit money Personal and coverage (PP 03 Other crime coverages 21) advertising injury liability Extortion — Joint ownership commercial entities coverage (PP 03 Medical payments 34) Guests' property Exclusions 5.3 Commercial auto ('10) 6.4 Farm coverage Supplementary Commercial auto coverage payments Farm liability coverages forms ('06) Who is an insured Business auto Coverage H — Bodily Limits of insurance injury and property Business auto physical Conditions damage liability damage Definitions Coverage I — Personal Garage and advertising Occurrence versus claims- Coverage form sections injury liability made Covered autos Coverage J — Medical Claims-made features payments Liability coverage Trigger Exclusions Retroactive date

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Additional coverages The Jones Act (46 Principal, obligee, surety USC 688) Limits of insurance Contract bonds 8.2 Workers compensation Conditions and employers liability License and permit bonds Definitions insurance policy Judicial bonds General section 7.0 Businessowners Policy — 9.5 Boatowners Liability 10% (10 Items) Part One — Workers 7.1 Characteristics and compensation insurance purpose Part Two — Employers 7.2 Businessowners Section liability insurance New Mexico Examination for II — Liability Property and Casualty Insurance Part Three — Other states Series 18-31 Coverages insurance 150 questions – 2.5-hour time Exclusions Part Four — Your duties if injury occurs limit Who is an insured Part Five — Premium Effective April 30, 2019 Limits of insurance Part Six — Conditions General conditions 1.0 Insurance Regulation 3% Voluntary compensation (5 Items) Definitions endorsement 1.1 Licensing 7.3 Businessowners Section 8.3 Premium computation III — Common Policy Process (59A-11-2, 3, Conditions Job classification — payroll 59A-12-12; Reg and rates 13.4.2.8, .9) 7.4 Selected endorsements Experience modification Types of licensees (Reg Hired auto and non-owned factor 13.4.2.7, .11) auto liability (BP 04 04) Premium discounts Insurance Producers 8.0 Workers Compensation (59A-12-2) Insurance 6% (6 Items) 8.4 Other sources of coverages Brokers (59A-12-3) 8.1 Workers compensation laws Assigned risk pool law Consultants (59A- (59A-33-1–15) 11A-1–8) Types of laws Self-insured employers and Nonresident (59A-12- Monopolistic versus employer groups (RL 25) (59A-11-24) competitive 52-1-4(A); 52-5-4.1; 52- Temporary (59A-11- Compulsory versus 6-1–25) 4; 59A-12-19; Reg elective 13.4.2.12) 9.0 Other Coverages and Options New Mexico Workers 8% (8 Items) Maintenance and duration Compensation Act 9.1 Umbrella/excess liability policies Expiration and Exclusive remedy (RL renewal (59A-11- 52-1-6) Personal (DL 98 01) 10, 11; Reg 13.4.2.17, .18) Covered injuries (RL Commercial (CU 00 01) 52-1-11, 12, 19, 28) Address change (59A- 9.2 Specialty liability 12-17) (59A-11-24) Occupational disease insurance (RL 52-3-33) Continuing education Professional liability Benefits provided (RL (59A-12-26; Reg 52-1-20, 25, 25.1, Errors and omissions 13.4.7.9, .12) 26, 26.1, 40–44, 46, Director and officers Disciplinary actions 49) liability Suspension, Federal workers Fiduciary liability revocation, or compensation laws refusal to renew Liquor liability Federal Employers (59A-11-8, 10, 14– Liability Act (FELA) Employment practices 16, 18, 19) (45 USC 51–60) liability Cease and desist US Longshore and 9.3 Surplus lines orders (59A-16-27) Harbor Workers Penalties and fines Compensation Act Definitions and markets (59A-1-18, 59A-11- (33 USC 904) Licensing requirements 17, 21) 9.4 Surety bonds 1.2 State regulation

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Superintendent's general Fraud and false statements Apparent duties and powers (59A- (18 USC 1033, 1034) 2-8–10) Responsibilities to the applicant/insured 2.0 General Insurance 7% (11 Company regulation Items) 2.4 Contracts Certificate of authority 2.1 Concepts (59A-5-10) Elements of a legal Risk management key contract Unfair claim terms settlement practices Offer and acceptance Risk (59A-16-20) Consideration Exposure Complaint record Competent parties (59A-16-22) Hazard Legal purpose Appointment of Peril Insurance Producer Distinct characteristics of (59A-11-12; Reg Loss an insurance contract 13.4.2.17) Methods of handling risk Contract of adhesion Termination of Avoidance Insurance Producer Personal contract appointment (59A- Retention Unilateral contract 11-13; Reg 13.4.2.29) Sharing Conditional contract

Unfair trade practices Stock companies Representations/misre presentations Misrepresentation Mutual companies Warranties (59A-16-4, 23) Fraternal benefit Concealment False advertising societies (59A-16-4, 5) Risk retention groups Fraud Twisting (59A-16-6) Private versus government Waiver and estoppel

Defamation (59A-16- insurers 3.0 Property and Casualty 10) Authorized versus Insurance Basics 13% Unfair discrimination unauthorized insurers (19 Items) (59A-16-12, 13, Domestic, foreign and alien 3.1 Principles and concepts 17(D)) insurers Insurable interest Rebating (59A-16- Financial status Underwriting 16–18) (independent rating Boycott, coercion, or service) Function intimidation (59A- Marketing (distribution) Loss ratio 16-19) systems Rates Examination of books and 2.3 Insurance Producers records (59A-4-3, 4) and general rules of Types Insurance Fraud Act (59A- agency Components 16C-1–16) Insurer as principal Hazards Consumer information Insurance Producer/insurer Physical privacy (59A-2-9.3; Reg relationship 13.1.3.1–.28) Moral Authority and powers of 1.3 Federal regulation Insurance Producers Morale

Fair Credit Reporting Act Express Negligence (15 USC 1681–1681d) Implied Elements of a negligent act

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Defenses against Pro rata 4.0 Dwelling Policy 5% (7 negligence Items) Contribution by equal Damages shares 4.1 Characteristics and purpose Compensatory — Limits of liability special versus 4.2 Coverage forms — Perils general Per occurrence insured against (accident) Punitive Basic Per person Absolute liability Broad Aggregate — general Strict liability versus products — Special completed 4.3 Property coverages Vicarious liability operations Coverage A — Dwelling Causes of loss (perils) Split Coverage B — Other Named perils versus Combined single special (open) perils structures Restoration/nonreduction Coverage C — Personal Direct loss of limits property Consequential or indirect Coinsurance loss Coverage D — Fair rental Vacancy or unoccupancy value Blanket versus specific insurance Named insured provisions Coverage E — Additional living expense Basic types of construction Duties after loss Other coverages Loss valuation Assignment 4.4 General exclusions Actual cash value Abandonment 4.5 Conditions Replacement cost Insurer provisions 4.6 Selected endorsements Market value Liberalization Special provisions — New Agreed value Subrogation Mexico (DP 01 30)

Stated amount Salvage Automatic increase in insurance (DP 04 11) Valued policy Claim settlement options Dwelling under 3.2 Policy structure construction (DP 11 43) Duty to defend Declarations 4.7 Personal liability Third-party provisions Definitions supplement Standard mortgage Insuring agreement or clause 5.0 Homeowners Policy 17% clause (26 Items) Loss payable clause Additional/supplementary 5.1 Coverage forms coverage 3.4 New Mexico laws, HO-2 through HO-6 regulations and Conditions required provisions HO-8 Exclusions New Mexico Property and 5.2 Definitions Endorsements Casualty Insurance Guaranty Fund (59A-43- 5.3 Section I — Property 3.3 Common policy 1–18) coverages provisions Cancellation and Coverage A — Dwelling Insureds — named, first nonrenewal (59A-18-29; Coverage B — Other named, additional Reg 13.8.4.8, .9) structures Policy period Binders (59A-18-22) Coverage C — Personal Policy territory Arbitration (RL 44-7A-7) property Cancellation and Loss payment (59A-16- Coverage D — Loss of use nonrenewal 21) Additional coverages Deductibles Federal Terrorism 5.4 Section II — Liability Insurance Program (15 coverages Other insurance USC 6701; Public Law Nonconcurrency 107-297, 109–144, 110– Coverage E — Personal 160) liability Primary and excess

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Coverage F — Medical Notice Conditions payments to others Aftermarket crash parts Definitions Additional coverages (RR 12.2.6.12) Selected endorsements 5.5 Perils insured against 6.2 Personal ('05) auto policy Lessor — additional 5.6 Exclusions insured and loss Definitions payee (CA 20 01) 5.7 Conditions Liability coverage Mobile equipment (CA 5.8 Selected endorsements 20 15) Bodily injury and Special provisions — New property damage Auto medical Mexico (HO 01 30) payments coverage Supplementary (CA 99 03) Limited fungi, wet or dry payments rot, or bacteria coverage Drive other car (HO 04 26, HO 04 27) Exclusions coverage (CA 99 Permitted incidental Medical payments 10) occupancies (HO 04 42) coverage Individual named Earthquake (HO 04 54) Uninsured motorist insured (CA 99 17)

coverage Scheduled personal 7.0 Commercial Package Policy property (HO 04 61) Coverage for damage to (CPP) 16% (24 Items) your auto 7.1 Components of a Personal property commercial policy replacement cost (HO Collision 04 90) Common policy Other than collision declarations Home day care (HO 04 Deductibles 97) Common policy conditions Transportation Business pursuits (HO 24 One or more coverage expenses 71) parts Exclusions Watercraft (HO 24 75) 7.2 Commercial general liability ('07) Personal injury (HO 24 Duties after an accident or loss 82) Commercial general General provisions liability coverage forms 6.0 Auto Insurance 17% (26 Items) Selected endorsements Bodily injury and 6.1 Laws property damage Towing and labor liability New Mexico Mandatory costs (PP 03 03) Financial Responsibility Personal and Limited Mexico Act and required limits of advertising injury coverage (PP 03 liability (RL 66-5-201– liability 21) 239) Medical payments Joint ownership New Mexico Motor Vehicle coverage (PP 03 Exclusions Assigned Risks Law 34) (59A-32-1–13) Supplementary 6.3 Commercial auto ('10) payments Uninsured/underinsured motorist (RL 66-5-301; Commercial auto coverage Who is an insured Reg 13.12.3.1–.17) forms Limits of insurance Definitions Business auto Conditions Bodily injury Business auto physical Definitions damage Property damage Occurrence versus claims- Garage Stacked and non- made stacked Coverage form sections Claims-made features UM/UIM rejection Covered autos Trigger Required limits Liability coverage Retroactive date Cancellation/nonrenew Garagekeepers Extended reporting al (59A-17-7.1; coverage 59A-18-29; Reg periods — basic 13.8.4.8, .9) Physical damage versus supplemental coverage Grounds Premises and operations Exclusions

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Products and completed Inside the premises — 7.7 Farm coverage operations theft of money and securities Farm property coverages Insured contract ('03) Inside the premises — 7.3 Commercial property robbery or safe Coverage A — ('07) burglary of other Dwellings Commercial property property Coverage B — Other conditions form Outside the premises private structures Coverage forms Computer fraud Coverage C — Household personal Building and personal Funds transfer fraud property property Money orders and Coverage D — Loss of Condominium counterfeit money use association Other crime coverages Coverage E — Condominium Scheduled farm commercial unit- Extortion — personal property owners commercial entities Coverage F — Builders risk Guests' property Unscheduled farm Business income 7.5 Commercial inland personal property marine Legal liability Coverage G — Other Nationwide marine farm structures Extra expense definition Farm liability coverages Causes of loss forms Commercial inland marine ('06) Basic conditions form Coverage H — Bodily injury and property Broad Inland marine coverage forms damage liability Special Accounts receivable Coverage I — Personal Selected endorsements and advertising Bailee's customer injury liability Ordinance or law (CP 04 05) Commercial articles Coverage J — Medical payments Spoilage (CP 04 40) Contractors equipment floater Livestock coverage form Peak season limit of insurance (CP 12 Electronic data Mobile agricultural 30) processing machinery and equipment coverage Value reporting form Equipment dealers form (CP 13 10) Installation floater Causes of loss (basic, 7.4 Commercial crime ('06) Jewelers block broad and special) General definitions Signs Exclusions Burglary Valuable papers and Additional coverages Theft records Limits of insurance

Robbery Transportation coverages Conditions

Crime coverage forms Common carrier cargo Definitions liability Commercial crime Motor truck cargo 8.0 Businessowners Policy 9% coverage forms (13 Items) (discovery/loss forms sustained) 8.1 Characteristics and Transit coverage purpose Government crime forms coverage forms 8.2 Businessowners Section 7.6 Equipment breakdown I — Property (discovery/loss ('08) sustained) Coverage Equipment breakdown Coverages protection coverage form Exclusions (EB 00 20) Employee theft Limits of insurance Selected endorsement Forgery or alteration Deductibles Actual cash value (EB 99 59) Loss conditions

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

General conditions General section 10.5 National Flood Insurance Program Optional coverages Part One — Workers compensation insurance "Write your own" versus Definitions government Part Two — Employers 8.3 Businessowners Section liability insurance Eligibility II — Liability Part Three — Other states Coverage Coverages insurance Limits Exclusions Part Four — Your duties if Deductibles Who is an insured injury occurs 10.6 Other policies Limits of insurance Part Five — Premium Boatowners General conditions Part Six — Conditions Difference in conditions Definitions Voluntary compensation endorsement 10.7 FAIR plan act (59A-29- 8.4 Businessowners Section 9.3 Premium computation 1–7, 9; Reg 13.13.3.1– III — Common Policy .11) Conditions Job classification — payroll 8.5 Selected endorsements and rates Hired auto and non-owned Experience modification factor auto liability (BP 04 04) New Mexico Examination for Title Insurance Protective safeguards (BP Premium discounts Series 18-33 04 30) 9.4 Other sources of coverages 50 questions – One-hour time 9.0 Workers Compensation limit Insurance 6% (9 Items) Assigned risk pool law 9.1 Workers compensation (59A-33-1–15) Effective April 30, 2019 laws Self-insured employers and employer groups (RL Types of laws 1.0 Insurance Regulation 12% 52-1-4(A); 52-5-4.1; 52- (6 Items) Monopolistic versus 6-1–25) competitive 1.1 Licensing 10.0 Other Coverages and Requirements for licensure Compulsory versus Options 7% (10 Items) elective (59A-12-6, 12, 13) 10.1 Umbrella/excess New Mexico Workers liability policies Maintenance and duration Compensation Act Personal (DL 98 01) Expiration and Exclusive remedy (RL renewal (59A-11- 52-1-6) Commercial (CU 00 01) 10, 11; Reg 13.4.2.13; Reg 10.2 Specialty liability Covered injuries (RL 13.4. 52-1-11, 12, 19, 28) insurance 2.27; Reg 13..4.2.28) Occupational disease Professional liability Continuing education (RL 52-3-33) Errors and omissions (59A-12-26; Reg Benefits provided (RL Director and officers 13.4.7.9, .12) 52-1-20, 25, 25.1, liability 26, 26.1, 40–44, 46, Disciplinary actions 49) Fiduciary liability Suspension, Federal workers Liquor liability revocation or refusal compensation laws to renew (59A-11- Employment practices 8, 10, 14–16, 18) Federal Employers liability Liability Act (FELA) Cease and desist (45 USC 51–60) 10.3 Surplus lines orders (59A-16-27)

US Longshore and Definitions and markets Penalties and fines Harbor Workers Licensing requirements (59A-1-18; 59A-11- Compensation Act 17, 21; 59A-16-29) (33 USC 904) 10.4 Surety bonds 1.2 State regulation The Jones Act (46 Principal, obligee, surety Superintendent's general USC 688) Contract bonds duties and powers (59A- 9.2 Workers compensation 2-8; 59A-30-4) and employers liability License and permit bonds Insurer regulation insurance policy Judicial bonds

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Rates (59A-30-6, 15; 2.2 Contracts Language of legal Reg 13.14.9.8–.11) descriptions Elements of a legal Forms (59A-30-5, contract 3.4 Escrow principles 15); Reg 13.14.18.1-.13 Offer and acceptance Escrow terminology

Examination of title Consideration Fiduciary responsibilities of escrow Insurance required (59A-30- Competent parties 11) Producers Legal purpose Insurance Producer 3.5 Recording regulation 3.0 Real Property 20% (10 Requirements to record Items) Gross negligence of Presumptions Insurance Producer 3.1 Concepts, principles and practices (Reg 13.14.3.8(A)) 4.0 Title Insurance 36% (18 Disregard of written Definition of real property Items) instructions (Reg 4.1 Title insurance Types of real property 13.14.3.8(B)) principles Title to real property Unfair trade practices and Risks covered by title frauds (Reg Marketable title insurance 13.14.3.8(C)) 3.2 Acquisition and transfer Risk of error in public Misrepresentation of real property records (59A-16-4, 23) Conveyances Hidden off-record title Illegal inducements risks (59A-12-11) Encumbrances Risk of omission and Charges to be made Adverse possession commission by for all services (Reg Insurance Producer Condemnation 13.14.3.13) Entities that can be Escheats Failure to act as insured; need for fiduciary (59A-12- Abandonment insurance 22; Reg 13.14.4.8) Judicial sales Individual Consumer information Commercial privacy (59A-2-9.3; Reg Decedent's estates 13.1.3.1–.28) Intestate Interests that can be insured Reporting requirements, Testate examination of books Fee simple estate and records (59A-4-3, Trusts 4; Reg 13.14.16.8; Reg Estate in common 13.14.17.8) Types of joint ownership Leasehold estate 1.3 Federal regulation Tenants in common Life estate Fair Credit Reporting Act Joint tenancy Easements (15 USC 1681–1681d) Community property Title insurance forms Fraud and false statements Acknowledgments (18 USC 1033, 1034) Promulgated forms Legal capacity of parties (Reg 13.14.8.10; 2.0 General Insurance 4% (2 13.14.18.8) Items) Individuals Commitments 2.1 Insurance Producers Corporations and general rules of Owner's policy agency General partnerships Loan policy Insurer as principal Limited partnerships Leasehold policies Insurance Producer/insurer Fictitious names relationship Replacement policy Trust agreements Authority and powers of Title insurance policy Limited Liability Insurance Producers structure and provisions Company (LLC) Express Insuring provisions 3.3 Legal descriptions Implied Schedule A Types of legal descriptions Apparent Schedule B — Types of measurements exceptions from used Responsibilities to the coverage applicant/insured

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Exclusions from Probate Limited surety coverage Producer (59A-51- Good faith 2(C)) Conditions and stipulations Foreclosure Property bondsman (59A-51-2(D)) Endorsements Claims against the title Lis pendens Requirements (59A-51-4, Title Insurance General 4.1) Rate Provisions Tribal Land Access Surety bond (59A-51- Inclusive 5.3 Principles of clearing 8) title Payments of premium Solicitor appointment to others Releases (59A-51-5(C), 12)

Rebates and Assignments Maintenance and duration unauthorized discounts Subordinations Expiration and renewal (59A-11- Reissue Owner’s or Affidavits 10, 11; 59A-51-10) leasehold rates Quiet Title Termination of Refinance 5.4 Settlement or closing business (59A-51- Endorsements procedures 11(B))

4.2 Title searching Real Estate Settlement Address change (59A- techniques Procedures Act (RESPA) 12-17) (59A-11-24) Sections 8 & 9 Hard copy index Continuing education Insured closing protection (59A-12-26; Reg Computer index 13.4.7.9, .12) Available funds Chain sheet Disciplinary actions Interest bearing trust 5.0 Title Exceptions and account Suspension, Procedures for Clearing revocation, or Title 28% (14 Items) Requirements refusal to renew (59A-11-8, 10, 14– 5.1 Principles and concepts Books & Records 16, 18) General exceptions Accounting Procedures Cease and desist order Voluntary and involuntary Agreed-Upon Procedures (59A-16-27) liens Review Penalty for violations Federal liens Escrow Compliance (59A-51-16, 17, 18) Mortgage 1.2 Bondsman regulation

Deed of trust Place of business (59A- 51-13; Reg 13.20.2.18) Judgments New Mexico Examination for Operate under one name Taxes and assessments Bail Bonds Series 18-34 (59A-51-13) Recent surveys Record maintenance and 50 questions – One-hour time examination (Reg Condominiums limit 13.20.2.22) Water rights Effective April 30, 2019 Financial statement Mineral rights (59A-51-10(B)) Equitable interests 1.0 Insurance Regulation 16% List of forfeitures (8 Items) (Reg 13.20.2.22) Executions 1.1 Licensing Prohibited conduct Covenants Superintendent's general Practice of law (59A- Conditions duties and powers (59A- 51-13(A)(5)) 2-8) Restrictions Referral to attorney Process (59A-51-5; Reg (59A-51-13(A)(1)) Access 13.20.2.8, .9) 5.2 Special problem areas Signing bond in blank Persons to be licensed (59A-51-13(D)) and concerns (59A-51-2, 3) Acknowledgments Unfair and prohibited Types of licensees practices Mechanic's lien Bail bondsman (59A- Twisting (59A-16-6) Bankruptcy 51-2(A))

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Falsification, omission Disposition Prior to trial of records; misleading financial Extradition Pending appeal statements (59A- Felony Failure to appear (31-3-2) 16-8) Fugitive Revocation of bail Unfair discrimination, rebates; other Hearing 3.4 Release provisions coverages (59A-16- (Article 4) 12, 13, 17) Incarceration Cash only bond Monopolistic practices Indictment Personal surety bond (59A-16-19) Misdemeanor Corporate surety bond False applications, Recognizance claims, proofs of Personal recognizance loss (59A-16-23) Revoke 3.5 Surrender of principal Knowledge of insurer Suspend (defendant) (31-3-3) of prohibited acts (59A-16-25) Warrant Discharge of bond Writ Penalties (59A-16-29) Return of premium

Misrepresentation 2.3 Parties to a surety bond Return of collateral (59A-16-4; 59A-51- Principal 14(A)(2)) 3.6 Bond forfeiture Indemnitor for Motion False advertising principal (59A-16-5) Notice to defendant and Indemnity agreement Defamation (59A-16- sureties (31-3-2) 10) Obligee Judgment

Boycott, coercion or Surety Dispersal of funds intimidation (59A- 16-19) 3.0 Bail Bond Principles and Arrest after forfeiture Practices (Supreme Court Charges and refunds Rules and Criminal Forms, (59A-51-13) Article 3 - Bail, Article 4 - Provisions) 45% (22 New Mexico Examination for Extra territorial fees (59A- Items) Crop Insurance 51-13) Series 18-35 3.1 Duties of bail agent Compensation (Reg 50 questions – 1-hour time limit 13.20.2.18) Approval (Reg 13.20.2.23) Effective April 30, 2019 Other provisions applicable (59A-51-19) Premium receipt (Reg 13.20.2.18) Consumer information 1.0 Insurance Regulation 10% privacy (59A-2-9.3; Reg Power of attorney (5 Items) 1.1 Licensing 13.1.3.1–.28) Collateral and trust

2.0 The Legal Framework 39% obligations (Reg Process (59A-11-2, 3, 13.20.2.21) (20 Items) 59A-12-12; Reg 13.4.2.8, .9) 2.1 Court jurisdictions 3.2 Procedure Types of licensees (Reg Original jurisdiction Application for bond 13.4.2.7, .11) (Surety/defendant Territorial contract) Insurance Producers (59A-12-2) Judicial Collateral security Brokers (59A-12-3) Personal Surety contract Consultants (59A- Appellate jurisdiction Posting the bond 11A-1–8) 2.2 Definitions (31-1-2) Informational notice Nonresident (59A-12- Acquit 3.3 Court procedures 25) (59A-11-24)

Adjudicate Court appearances Temporary (59A-11- 4; 59A-12-19; Reg Capital offense Arraignment 13.4.2.12) Conviction Trial Maintenance and duration Custody Appeal Expiration and Defendant Conditions of bail renewal (59A-11-

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

10, 11; Reg Defamation (59A-16- Authorized versus 13.4.2.17, .18) 10) unauthorized insurers

Address change (59A- Unfair discrimination Domestic, foreign and alien 12-17) (59A-11-24) (59A-16-12, 13, insurers 17(D)) Continuing education Financial status (59A-12-26; Reg Rebating (59A-16- (independent rating 13.4.7.9, .12) 16–18) service)

Disciplinary actions Boycott, coercion, or Marketing (distribution) intimidation (59A- systems Suspension, 16-19) revocation, or 2.3 Insurance Producers refusal to renew Examination of books and and general rules of (59A-11-8, 10, 14– records (59A-4-3, 4) agency 16, 18) Insurance Fraud Act (59A- Insurer as principal Cease and desist 16C-1–16) orders (59A-16-27) Insurance Producer/insurer Consumer information relationship Penalties and fines privacy (59A-2-9.3; Reg (59A-1-18, 59A-11- 13.1.3.1–.28) Authority and powers of 17, 21) Insurance Producers 1.3 Federal regulation 1.2 State regulation Express Fair Credit Reporting Act Superintendent's general (15 USC 1681–1681d) Implied duties and powers (59A- Apparent 2-8–10) Fraud and false statements (18 USC 1033, 1034) Responsibilities to the Company regulation applicant/insured 2.0 General Insurance 10% (5 Certificate of authority Items) 2.4 Contracts (59A-5-10) 2.1 Concepts Elements of a legal Unfair claim Risk management key contract settlement practices terms (59A-16-20) Offer and acceptance Risk Complaint record Consideration (59A-16-22) Exposure Competent parties Appointment of Hazard Insurance Producer Legal purpose Peril (59A-11-12; Reg Distinct characteristics of 13.4.2.17) Loss an insurance contract Termination of Methods of handling risk Contract of adhesion Insurance Producer appointment (59A- Avoidance Personal contract 11-13; Reg 13.4.2.29) Retention Unilateral contract

Insurance Producer Sharing Conditional contract regulation Reduction Legal interpretations Shared commissions affecting contracts Transfer (59A-12-24) Ambiguities in a Elements of insurable risks Fiduciary duties (59A- contract of adhesion 12-22) Adverse selection Reasonable expectations Prohibited premiums Reinsurance or charges (59A- Indemnity 16-24) 2.2 Insurers Utmost good faith Controlled business Types of insurers Representations/misre (59A-12-8, 9) Stock companies presentations Unfair trade practices Mutual companies Warranties Misrepresentation Fraternal benefit Concealment (59A-16-4, 23) societies Fraud False advertising Risk retention groups (59A-16-4, 5) Waiver and estoppel Private versus government Twisting (59A-16-6) insurers

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

3.0 Crop Insurance 34% (17 NCIS - 577 Tree Fruits, Small grain Items) Grapes, Bush Fruits and Berries Coarse grain 3.1 Eligibility Duties after loss Insureds 4.0 Federal Multi-Peril Crop Insurance Programs 46% Insured Insurable crops (23 Items) Insurer 3.2 Application 4.1 Basic crop insurance 4.4 Additional programs Binder Eligibility Crop Revenue Coverage Insureds Declarations section (CRC) Insurable crops Required signatures Income Protection (IP) Actuarial document books Required information Revenue Assurance (RA) Yield guarantee Provision for company Group Risk Plan (GRP) rejection Actual production

3.3 Term of coverage history (APH)

Effective date Assigned yield Transitional yield New Mexico Examination for Inception of coverage Personal Lines Insurance Expiration Coverage level Series 18-38

Cancellation Market price percentage 100 questions - 2-hour time limit 3.4 Perils insured against Covered causes of loss Effective April 30, 2019

3.5 Exclusions Application

3.6 Limits of coverage Basic unit 1.0 Insurance Regulation 20% (20 Items) Administrative fee Insurable value 1.1 Licensing Production records Percentage plan Process (59A-11-2, 3, Deductibles Acreage reporting 59A-12-12; Reg 13.4.2.8, .9) Reduction of insurance Late planting agreement option Types of licensees (Reg 3.7 Other provisions 13.4.2.7, .11) Disqualification of producer Replanting clause Insurance Producers Life of policy (59A-12-2) Acreage variation Continuous Brokers (59A-12-3) Transit extension Cancellation Consultants (59A- Fire department service 11A-1–8) charge Termination Nonresident (59A-12- Pro rata liability clause 4.2 Multiple peril policy options 25) Fire coverage Levels of coverage Temporary (59A-11- Catastrophe loss award 4; 59A-12-19; Reg Price election 13.4.2.12) Assignment Optional units Maintenance and duration Subrogation High-risk land exclusion Expiration and 3.8 Claim settlement renewal (59A-11- practices Hail/fire exclusion 10, 11; Reg 13.4.2.17, .18) Notice of loss Replant payments Late planting coverage Address change (59A- Insured's duties after a 12-17) (59A-11-24) loss Prevented planting coverage Continuing education Appraisal/arbitration (59A-12-26; Reg 3.9 Mandatory Transfer of coverage 13.4.7.9, .12) endorsements Assignment of indemnity Disciplinary actions NCIS - 445 Tomatoes, Subrogation Suspension, Vegetable and Vine revocation, or Crops 4.3 Other provisions refusal to renew Individual crop (59A-11-8, 10, 14– 16, 18)

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Cease and desist Consumer information Producer/insurer orders (59A-16-27) privacy (59A-2-9.3; Reg relationship 13.1.3.1–.28) Penalties and fines Authority and powers of (59A-1-18, 59A-11- 1.3 Federal regulation producers 17, 21) Fair Credit Reporting Act Express 1.2 State regulation (15 USC 1681–1681d) Implied Superintendent's general Fraud and false statements duties and powers (59A- (18 USC 1033, 1034) Apparent 2-8–10) 2.4 Contracts 2.0 General Insurance 10% Company regulation (10 Items) Elements of a legal Certificate of authority 2.1 Concepts contract (59A-5-10) Risk management key Offer and acceptance terms Unfair claim Consideration settlement practices Risk (59A-16-20) Competent parties Exposure Complaint record Legal purpose (59A-16-22) Hazard Distinct characteristics of Appointment of Peril an insurance contract Insurance Producer (59A-11-12; Reg Loss Contract of adhesion 13.4.2.17) Methods of handling risk Aleatory contract Termination of Avoidance Personal contract Insurance Producer appointment (59A- Retention Unilateral contract 11-13; Reg 13.4.2.29) Sharing Conditional contract

Insurance Producer Reduction Legal interpretations regulation affecting contracts Transfer Shared commissions Ambiguities in a Elements of insurable risks (59A-12-24) contract of adhesion Adverse selection Fiduciary duties (59A- Reasonable expectations 12-22) Reinsurance Indemnity Prohibited premiums 2.2 Insurers or charges (59A- Utmost good faith 16-24) Types of insurers Representations/misre Stock companies Unfair trade practices presentations Mutual companies Misrepresentation Warranties (59A-16-4, 23) Fraternal benefit Concealment False advertising societies Fraud (59A-16-4, 5) Lloyd's associations Twisting (59A-16-6) Waiver and estoppel Risk retention groups Defamation (59A-16- Private versus government 3.0 Property and Casualty 10) insurers Insurance Basics 23% (23 Items) Unfair discrimination Admitted versus 3.1 Principles and concepts (59A-16-12, 13, nonadmitted insurers 17(D)) Insurable interest Domestic, foreign and alien Rebating (59A-16- insurers Underwriting 16–18) Financial status Function Boycott, coercion, or (independent rating intimidation (59A- services) Loss ratio 16-19) Marketing (distribution) Rates Examination of books and systems records (59A-4-3, 4) Types 2.3 Producers and general Loss costs Insurance Fraud Act (59A- rules of agency 16C-1–16) Components Insurer as principal Hazards

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Physical Policy period Federal Terrorism Insurance Program (15 Moral Policy territory USC 6701; Public Law Morale Cancellation and 107-297, 109–144, 110– nonrenewal 160) Negligence Deductibles 4.0 Dwelling Policy 6% (6 Elements of a Items) negligent act Other insurance 4.1 Characteristics and Defenses against Nonconcurrency purpose negligence Primary and excess 4.2 Coverage forms — Perils Damages insured against Pro rata Compensatory — Basic special versus Limits of liability Broad general Per occurrence Special Punitive (accident) 4.3 Property coverages Absolute liability Per person Coverage A — Dwelling Strict liability Split Coverage B — Other Vicarious liability Combined single structures Causes of loss (perils) Restoration/nonreduction of limits Coverage C — Personal Named perils versus property special (open) perils Coinsurance Coverage D — Fair rental Direct loss Vacancy or unoccupancy value

Consequential or indirect Named insured provisions Coverage E — Additional loss Duties after loss living expense Other coverages Blanket versus specific Assignment insurance Abandonment 4.4 General exclusions Basic types of construction 4.5 Conditions Insurer provisions Loss valuation 4.6 Selected endorsements Liberalization Actual cash value Subrogation Special provisions — New Replacement cost Mexico (DP 01 30) Salvage Functional Automatic increase in replacement cost Claim settlement insurance (DP 04 11) options Market value Dwelling under Duty to defend construction (DP 11 43) Agreed value Third-party provisions 4.7 Personal liability Stated amount supplement Standard mortgage Valued policy clause 5.0 Homeowners Policy 16% (16 Items) 3.2 Policy structure Loss payable clause 5.1 Coverage forms Declarations 3.4 New Mexico laws, HO-2 through HO-6 Definitions regulations and required provisions 5.2 Definitions Insuring agreement or New Mexico Property and clause 5.3 Section I — Property Casualty Insurance coverages Additional/supplementary Guaranty Fund (59A-43- coverage 1–18) Coverage A — Dwelling Conditions Cancellation and Coverage B — Other nonrenewal (59A-18-29; structures Exclusions Reg 13.8.4.8, .9) Coverage C — Personal Endorsements Binders (59A-18-22) property 3.3 Common policy Arbitration (RL 44-7A-7) Coverage D — Loss of use provisions Loss payment (59A-16- Additional coverages Insureds — named, first 21) named, additional 5.4 Section II — Liability coverages

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Coverage E — Personal Grounds liability Notice Coverage F — Medical payments to others Aftermarket crash parts New Mexico Examination for (RR 12.2.6.12) Public Adjuster Additional coverages Series 18-39 6.2 Personal ('05) auto 5.5 Perils insured against policy 50 questions - 1-hour time limit 5.6 Exclusions Definitions Effective April 30, 2019 5.7 Conditions Liability coverage 5.8 Selected endorsements Bodily injury and 1.0 Insurance Regulation 12% property damage (6 Items) Special provisions — New Mexico (HO 01 30) Supplementary 1.1 Licensing requirements payments Limited fungi, wet or dry Qualifications (59A-11, rot, or bacteria coverage Exclusions 59A-12) (HO 04 26, HO 04 27) Medical payments Process (59A-11-2, 3, Permitted incidental coverage 59A-12-12; Reg occupancies (HO 04 42) 13.4.2.8, .9) Uninsured motorists Earthquake (HO 04 54) coverage Fees

Scheduled personal Coverage for damage to 1.2 Maintenance and property (HO 04 61) your auto duration (NMSA 59A- 11) Personal property Collision replacement cost (HO Expiration and renewal 04 90) Other than collision (59A-11-10, 11; Reg 13.4.2.17, .18) Home day care (HO 04 Deductibles Contract requirements 97) Transportation Business pursuits (HO 24 expenses Records 71) Exclusions Name and Address change (59A-12-17) (59A-11-24) Watercraft (HO 24 75) Duties after an accident or Personal injury (HO 24 loss Reporting of actions 82) General provisions Emergency Adjusters (NMSA 59A-13-6) 6.0 Auto Insurance 22% (22 Selected endorsements Items) 1.3 Disciplinary actions Towing and labor 6.1 Laws costs (PP 03 03) Cease and desist orders New Mexico Mandatory (59A-16-27) Limited Mexico Financial Responsibility coverage (PP 03 Penalties and fines (59A- Act and required limits of 21) 1-18, 59A-11-17, 21) liability (RL 66-5-201– 239) Joint ownership Suspension, revocation, or coverage (PP 03 refusal to issue or renew New Mexico Motor Vehicle 34) (59A-11-8, 10, 14–16, Assigned Risks Law 18) (59A-32-1–13) 7.0 Other Coverages and Options 1.4 Claim settlement laws Uninsured/underinsured 3% (3 Items) and regulations (59A- motorist (RL 66-5-301; 7.1 Personal umbrella 16-20) Reg 13.12.3.1–.17) policy 1.5 Unfair and Prohibited Definitions 7.2 National Flood Insurance Program Insurance Trade Bodily injury Practices "Write your own" versus Property damage government 2.0 Insurance Basics 22% (11 Items) Stacked and non- Eligibility stacked 2.1 Contract basics Coverage UM/UIM rejection Elements of a legal Limits contract Required limits Deductibles Offer and acceptance Cancellation/nonrenew al (59A-17-7.1; 7.3 Other policies Consideration 59A-18-29; Reg Competent parties 13.8.4.8, .9) Boatowners

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Legal purpose Declarations 6701; Public Law 107-297, 109–144, 110–160) Distinct characteristics of Definitions an insurance contract 3.0 Adjusting Losses 23% (12 Insuring agreement or Items) Contract of adhesion clause 3.1 Role of the adjuster Aleatory contract Additional/supplementary coverage Duties and responsibilities Personal contract Conditions Staff and independent Unilateral contract adjuster versus public Exclusions adjuster Conditional contract Endorsements Relationship to the legal Legal interpretations profession affecting contracts 2.4 Common policy provisions 3.2 Property losses Ambiguities in a contract of adhesion Insureds — named, first Duties of insured after a named, additional loss Reasonable expectations Policy period Notice to insurer

Indemnity Policy territory Minimizing the loss

Utmost good faith Cancellation and Proof of loss nonrenewal Representations/misre Special requirements presentations Deductibles Production of books Warranties Other insurance and records

Concealment Nonconcurrency Abandonment

Fraud Primary and excess Determining value and loss

Waiver and estoppel Pro rata Burden of proof of value and loss 2.2 Insurance principles Policy limits and concepts Estimates Restoration/nonreduction Insurable interest of limits Depreciation

Hazards Coinsurance Salvage

Physical Vacancy or unoccupancy Claim settlement options

Moral Assignment Payment and discharge

Morale Liberalization 3.3 Claims adjustment procedures Causes of loss (perils) Third-party provisions Subrogation procedures Named perils versus Standard mortgage special (open) perils clause Alternative dispute resolution Direct loss Loss payable clause Appraisal Consequential or indirect No benefit to Bailee loss Arbitration 2.5 New Mexico laws, Blanket versus specific regulations and Competitive estimates insurance required provisions Mediation Basic types of construction New Mexico Property and Casualty Insurance Negotiation Loss valuation Guaranty Fund (59A-43- 4.0 Dwelling Policy 10% (5 Actual cash value 1–18) Items) Broad Evidence Rule Cancellation and 4.1 Characteristics and nonrenewal (59A-18-29; purpose Replacement cost Reg 13.8.4.8, .9) 4.2 Coverage forms — Perils Market value Binders (59A-18-22) insured against

Agreed value Arbitration (RL 44-7A-7) Basic Stated amount Loss payment (59A-16- Broad 21) Valued policy Special Federal Terrorism 2.3 Policy structure Insurance Program (15 USC 4.3 Property coverages

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Coverage A — Dwelling Home day care (HO 04 Nationwide marine 97) definition Coverage B — Other structures Business pursuits (HO 24 Commercial inland marine 71) conditions form Coverage C — Personal property Watercraft (HO 24 75) Inland marine coverage forms Coverage D — Fair rental Personal injury (HO 24 value 82) Accounts receivable

Coverage E — Additional Bailee's customer 6.0 Commercial Package Policy living expense (CPP) 8% Commercial articles Other coverages (4 Items) Contractors equipment 4.4 General exclusions 6.1 Components of a floater commercial policy 4.5 Conditions Electronic data Common policy processing 4.6 Selected endorsements declarations Equipment dealers Special provisions — New Common policy conditions Mexico (HO 01 30) Installation floater Interline endorsements Automatic increase in Jewelers block insurance (DP 04 11) One or more coverage parts Signs Dwelling under construction (DP 11 43) 6.2 Commercial property Valuable papers and ('07) records

5.0 Homeowners Policy 17% (8 Items) Commercial property 7.0 Businessowners Policy 8% conditions form (4 Items) 5.1 Coverage forms Coverage forms 7.1 Characteristics and HO-2 through HO-6 purpose Building and personal 5.2 Definitions property 7.2 Businessowners Section I — Property 5.3 Section I — Property Condominium coverages association Coverage

Coverage A — Dwelling Condominium Exclusions Coverage B — Other commercial unit- Limits of insurance structures owners Deductibles Coverage C — Personal Builders risk Loss conditions property Business income General conditions Coverage D — Loss of use Legal liability Optional coverages Additional coverages Extra expense Definitions 5.4 Perils insured against Causes of loss forms 5.5 Exclusions 7.3 Businessowners Section Basic III — Common Policy 5.6 Conditions Broad Conditions

5.7 Selected endorsements Special 7.4 Selected endorsements Special provisions — New Selected endorsements Protective safeguards (BP Mexico (HO 01 30) 04 30) Ordinance or law Limited fungi, wet or dry coverage (CP 04 Hired auto and non-owned rot, or bacteria coverage 05) auto liability (BP 04 04) (HO 04 26, HO 04 27) Spoilage coverage Permitted incidental (CP 04 40) occupancies (HO 04 42) Peak season limit of New Mexico Examination for Earthquake (HO 04 54) insurance (CP 12 Independent / Staff Adjuster 30) Scheduled personal Series 18-40 property (HO 04 61) Value reporting form 50 questions – 1-hour time limit Personal property (CP 13 10) replacement cost (HO 6.3 Commercial inland Effective April 30, 2019 04 90) marine

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

1.0 Insurance Regulation 5% Representations/misre Additional/supplementary (2 Items) presentations coverage 1.1 Licensing requirements Warranties Conditions

Qualifications (59A-11, Concealment Exclusions 59A-12) Fraud Endorsements Process (59A-11-2, 3, 59A-12-12; Reg Waiver and estoppel 2.4 Common policy 13.4.2.8, .9) provisions 2.2 Insurance principles Licensing exemptions and concepts Insureds — named, first named, additional 1.2 Maintenance and Insurable interest duration Policy period Hazards Expiration and renewal Policy territory Physical (59A-11-10, 11; Reg Cancellation and 13.4.2.17, .18) Moral nonrenewal Records Morale Deductibles Continuing education Negligence Other insurance requirements (59A-12- 26; Reg 13.4.7.9, .12) Elements of a Nonconcurrency negligent act 1.3 Disciplinary actions Primary and excess Defenses against Cease and desist orders negligence Pro rata (59A-16-27) Damages Contribution by equal Penalties and fines (59A- shares 1-18, 59A-11-17, 21) Compensatory — special versus Limits of liability Suspension, revocation, or general refusal to issue or renew Per occurrence (59A-11-8, 10, 14–16, Punitive (accident) 18) Absolute liability Per person 1.4 Claim settlement laws Strict liability Aggregate — general and regulations versus products — Vicarious liability 1.5 Federal regulation completed Causes of loss (perils) operations Fair Credit Reporting Act (15 USC 1681–1681d) Named peril versus special Split (open) perils Fraud and false statements Combined single (18 USC 1033, 1034) Direct loss Restoration/nonreduction 1.6 Records Retention Consequential or indirect of limits loss Coinsurance 2.0 Insurance Basics 20% (10 Items) Blanket versus specific Vacancy or unoccupancy 2.1 Contracts insurance Assignment Elements of a legal Basic types of construction Insurer provisions contract Loss valuation Liberalization Offer and acceptance Actual cash value Duty to defend Consideration Replacement cost Third-party provisions Competent parties Functional Legal purpose replacement cost Standard mortgage clause Legal interpretations Market value Loss payable clause affecting contracts Agreed value No benefit to the Ambiguities in a Stated amount contract of adhesion Bailee 2.3 Policy structure Reasonable 2.5 New Mexico laws, expectations Declarations regulations and required provisions Indemnity Definitions New Mexico Property and Utmost good faith Insuring agreement or Casualty Insurance clause

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Guaranty Fund (59A-43- Determine liability 4.5 Conditions 1–18) Gathering evidence 4.6 Selected endorsements Cancellation and nonrenewal (59A-18-29; Physical evidence Special provisions — (DP 01 28) Reg 13.8.4.8, .9) Witness statements Concealment, Automatic increase in Determining value of insurance (DP 04 11) misrepresentation or intangible damages fraud Dwelling under 3.5 Coverage problems Federal Terrorism construction (DP 11 43) Insurance Program (15 Dealing with coverage 4.7 Personal liability USC 6701; Public Law disputes supplement 107-297, 109–144, 110– Reservation of rights 160) 5.0 Homeowners Policy 12% (6 letter Items) 3.0 Adjusting Losses 20% (10 Nonwaiver agreement Items) 5.1 Coverage forms 3.1 Role of the adjuster Declaratory judgment HO-2 through HO-6 action Duties and responsibilities 5.2 Definitions 3.6 Claims adjustment Staff and independent procedures 5.3 Section I — Property adjuster versus public coverages adjuster Settlement procedures Coverage A — Dwelling Relationship to the legal Advance payments profession Coverage B — Other Draft authority structures 3.2 Claim reporting Execution of releases Coverage C — Personal Claim investigation Subrogation procedures property Claim file documentation of Alternative dispute Coverage D — Loss of use events resolution Additional coverages Types of reports Appraisal 5.4 Section II — Liability Initial or first field coverages Arbitration Interim or status Coverage E — Personal Competitive estimates liability Full formal Mediation Coverage F — Medical 3.3 Property losses Negotiation payments to others Duties of insured after a Additional coverages loss 4.0 Dwelling Policy 5% (3 Items) 5.5 Perils insured against Notice to insurer 4.1 Characteristics and 5.6 Exclusions Minimizing the loss purpose 5.7 Conditions Proof of loss 4.2 Coverage forms — Perils insured against 5.8 Selected endorsements Special requirements Basic Special provisions — (HO Production of books 01 28) and records Broad Special Limited fungi, wet or dry Abandonment rot, or bacteria coverage Determining value and loss 4.3 Property coverages (HO 04 26, HO 04 27)

Burden of proof of Coverage A — Dwelling Permitted incidental occupancies (HO 04 42) value and loss Coverage B — Other Estimates structures Earthquake (HO 04 54)

Depreciation Coverage C — Personal Scheduled personal property property (HO 04 61) Salvage Coverage D — Fair rental Personal property Claim settlement options value replacement cost (HO 04 90) Payment and discharge Coverage E — Additional living expense Home day care (HO 04 3.4 Liability losses 97) Other coverages Investigation procedures Business pursuits (HO 24 4.4 General exclusions Verify coverage 71)

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Watercraft (HO 24 75) Deductibles Hired autos specified as covered autos Personal injury (HO 24 Transportation you own (CA 99 16) 82) expense Individual named Exclusions 6.0 Auto Insurance 15% (8 insured (CA 99 17) Items) Duties after an accident or Pollution liability — 6.1 Laws loss broadened coverage New Mexico Motor Vehicle General provisions (CA 99 48; CA 99 Financial Responsibility 55) Law Selected endorsements 7.0 Commercial Package Policy Required limits of Amendment of policy (CPP) 5% (3 Items) provisions — (PP 01 liability (RL 259:61, 7.1 Components of a 76) 264:20) commercial policy Towing and labor New Mexico Motor Vehicle Common policy costs (PP 03 03) Insurance Plan (Reg declarations 1405) Extended non-owned Common policy conditions New Mexico Commercial coverage — vehicles Auto Insurance Plan furnished or Interline endorsements available for regular Uninsured/underinsured use (PP 03 06) One or more coverage motorist (RL 264:15) parts Miscellaneous type Definitions vehicle — (PP 13 32) 7.2 Commercial general liability ('07) Bodily injury Joint ownership coverage — (PP 13 Commercial general Required limits 34) liability coverage forms Cancellation/nonrenewal 6.3 Commercial auto ('10) Bodily injury and (417-A) property damage Commercial auto coverage Grounds liability forms Notice Personal and Business auto advertising injury Notice of eligibility in liability Garage New Mexico Motor Medical payments Vehicle Insurance Business auto physical Plan (417-A:5(V)) damage Supplementary payments Residency statement Coverage form sections (417-A:3-b) Who is an insured Covered autos Medical costs coverage Limits of liability (RL 264:16) Liability coverage Conditions After-market parts Garagekeepers regulation (407-D) coverage Definitions

6.2 Personal ('05) auto Physical damage Exclusions policy coverage Occurrence versus claims- Definitions Exclusions made

Liability coverage Conditions Claims-made features Bodily injury and Definitions Trigger property damage Selected endorsements Retroactive date Supplementary Lessor — additional payments Extended reporting insured and loss periods — basic Exclusions payee (CA 20 01) versus supplemental

Medical payments Mobile equipment (CA Claim information 20 15) Uninsured motorist / Premises and operations underinsured motorist Auto medical coverage payments coverage Products and completed (CA 99 03) operations Coverage for damage to your auto Drive other car Insured contract coverage (CA 99 Pollution liability Collision 10) Other than collision

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Pollution liability (discovery/loss Equipment breakdown coverage form (CG sustained) protection coverage form 00 39) (EB 00 20) Coverages Pollution liability Selected endorsement limited coverage Employee theft form (CG 00 40) Actual cash value (EB Forgery or alteration 99 59) Pollution liability Inside the premises — 7.7 Farm coverage coverage extension theft of money and endorsement (CG securities Farm property coverage 04 22) form ('03) Inside the premises — 7.3 Commercial property robbery or safe Coverage A — ('07) burglary of other Dwellings property Commercial property Coverage B — Other conditions form Outside the premises private structures

Coverage forms Computer fraud Coverage C — Household personal Building and personal Funds transfer fraud property property Money orders and Coverage D — Loss of Condominium counterfeit money association use Other crime coverage Condominium Coverage E — commercial unit- Extortion — Scheduled farm owners commercial entities personal property (CR 04 03) Builders risk Coverage F — 7.5 Commercial inland Unscheduled farm Business income marine personal property

Legal liability Nationwide marine Coverage G — Other farm structures Extra expense definition Farm liability coverage Causes of loss forms Commercial inland marine conditions form form ('06) Basic Inland marine coverage Coverage H — Bodily Broad forms injury and property damage liability Special Accounts receivable Coverage I — Personal Selected endorsements Bailee's customer advertising injury coverage liability Commercial articles Ordinance or law (CP Coverage J — Medical 04 05) Contractors equipment payments floater Spoilage coverage Livestock coverage form (CP 04 40) Electronic data processing Mobile agriculture Peak season limit of machinery and insurance (CP 12 Equipment dealers equipment coverage 30) Installation floater form

Value reporting form Jewelers block Causes of loss (basic, (CP 13 10) broad and special) Signs 7.4 Commercial crime ('06) Exclusions Valuable papers and General definitions records Additional coverages

Burglary Transportation coverages Limits of insurance Theft Common carrier cargo Conditions Robbery liability Definitions Crime coverage forms Motor truck cargo forms 8.0 Businessowners Policy 5% Commercial crime (2 Items) coverage forms Transit coverage 8.1 Characteristics and (discovery/loss forms purpose sustained) 7.6 Equipment breakdown 8.2 Businessowners Section Government crime ('11) I — Property coverage forms Coverage

N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

Exclusions Compulsory versus elective Limits New Mexico Workers Deductibles Compensation Act

Loss conditions Exclusive remedy (RL General conditions 52-1-6)

Optional coverages Covered injuries (RL 52-1-11, 12, 19, 28) Definitions Occupational disease 8.3 Businessowners Section (RL 52-3-33) II — Liability Benefits provided (RL Coverages 52-1-20, 25, 25.1, 26, 26.1, 40–44, 46, Exclusions 49)

Who is an insured Federal workers Limits of insurance compensation laws

General conditions Federal Employers Liability Act (FELA) Definitions (45 USC 51–60)

8.4 Businessowners Section US Longshore and III — Common Policy Harbor Workers Conditions Compensation Act (33 USC 904) 8.5 Selected endorsements The Jones Act (46 Hired auto and non-owned USC 688) auto liability (BP 04 04) 10.2 Workers compensation Protective safeguards (BP and employers liability 04 30) insurance policy

Utility services — direct General section damage (BP 04 56) Part One — Workers Utility services — time compensation insurance element (BP 04 57) Part Two — Employers 9.0 Other Coverages and Options liability insurance 3% (1 Item) 9.1 Umbrella/Excess Part Three — Other states insurance Liability Policies Part Four — Your duties if Personal injury occurs Commercial Part Five — Premium Boatowners Part Six — Conditions 9.2 Ocean Marine Insurance Voluntary compensation Major Coverages endorsement

Cargo Insurance 10.3 Premium computation

Freight Insurance Job classification — payroll and rates 9.3 Protection and Indemnity Experience modification factor 9.4 Businessowners Section III — Common Policy Premium discounts Conditions 10.4 Other sources of coverages 10.0 Workers' Compensation Insurance 10% (5 Items) Assigned risk pool law 10.1 Workers compensation (59A-33-1–15) laws Self-insured employers and Types of laws employer groups (RL 52-1-4(A); 52-5-4.1; 52- Monopolistic versus 6-1–25) competitive

Exam Registration Form New Mexico Insurance Examinations

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Series Exam Title Exam Fee Total 1825 Life Insurance Producer $75 $ 1826 Accident and Health or Sickness Insurance Producer $75 $ 1827 Life, Accident and Health or Sickness Insurance Producer $75 $ 1828 Property Insurance Producer $75 $ 1829 Casualty Insurance Producer $75 $ 1831 Property, and Casualty Insurance Producer $75 $ 1833 Title $75 $ 1834 Bail $75 $ 1838 Personal Lines Insurance Producer $75 $ 1839 Public Adjuster $75 $ 1840 Independent and Staff Adjuster $75 $ 1841 Vida, Accidente y Salud o Enfermedad $75 $ 1842 Vida $75 $ 1843 Accidente y Salud o Enfermedad $75 $ 1844 Propiedad y Siniestros $75 $ 1845 Propiedad $75 $ 1846 Siniestros $75 $ 1847 Lineas Personales $75 $ 1848 Ajustador Publico $75 $ 1849 Ajustador de Compania o Independiente $75 $ Total Fee $ By filing this registration, you assume full responsibility for exam selection. If you are unsure about which exam you need for the license you are seeking, resolve this question before you register. Fees for these exams are non-refundable and non-transferrable. Exam fees are valid for 90 days from receipt at Prometric.

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N E W M E X I C O O F F I C E O F S U P E R I N T E N D E N T O F I N S U R A N C E

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