NEW MEXICO INSURANCE LAWS
A customer who knowingly receives any rebate of any kind in return for the purchase of an insurance policy can be punished by a fine of up to
$1,000
Each international and willful violation of the Insurance Code is subject to administrative penalty up to
$10,000
Unless defined as a felony and when another penalty is nor specifically required every violation of the Insurance Code is apretty misdemeanor punishable by a fine of up to
$500
# of credits required of ethics CE
1 credit hr
maximum fine for misdemeanors
1,000
If an insurer does not pay claims arising under its policies promptly a resident of New Mexico may sue for an additional amount of any check or draft that is not paid or lawfully rejected. What is the additional percentage that an insured may collect?
10%
maximum penalty for each willful and intentional violation
10,000
penalties of suspension/revocation minimum of ------ fine
100$
health insurance policies max liability ------- $
100,000$
life insurance cash or surrender values max liability ------- $
100,000$
long-term care: Coverage must be provided for at least ------ months
12 consecutive months
copy of the termination notice must be mailed to the producer within ------ days
15
total CE hrs required every year
15 credit hrs
late fees are ------ of the renewal fee
150%
To qualify for an insurance agent license in New Mexico an individual must be at least what age?
18 Years old
How far in advance must an insurer notify a producer of an appointment termination?
180 Days
The insurance Superintendent may issue a temporary insurance producer license, without requiring an examination for.
180 Days
insurers must provide benefits no later than ----- months after proof of death is recived
2 months
length of suspension of certificate of authority is up to
2 years
must renew license every
2 years
Within how many days after receiving an order from the Superintendent must a person engaged in a deceptive practice or act cease and desist
20 Days
Medicare supplement insurance: max compensation for the first year may be no longer than ----- %
200%
annuity benefits max liability ------- $
250,000
Insurers transacting business in New Mexico are required to maintain a complete record of all complaints received since the date if last examination by the Superintendent or for a minimum period of at least
3 Years
Records of insurance transactions must be retained by the agent for how many years after a policy expires?
3 Years
advertisements for long-term care insurance must be held for ----- years
3 years
continuance rq must be made within ------- days after renewal date
30
Agents and brokers must inform the state Insurance Department of a change of address within how many days?
30 Days
An insurer that elects NOT to renew an insurance policy must mail a non-renewal notice to the insured at least how many days before the expiration date of the policy?
30 Days
free look provision of ---- days in NM
30 Days
grace period for payment of premium
30 days
insurers must notify the superintendent within ----- days of termination date
30 days
life insurance benefits ------- $ max liability
300,000
disability and long term care insurance max liability ------- $
300,000$
conversion to individual policy, ----- days
31 days
The books and records of domestic insurers must be examined at least once every
5 Years
Medicare supplement insurance: renewal compensation must be provided for ----- years
5 years
must maintain advertising files for ----- years
5 years
fines up to -------- may be in lieu of suspension
5,000
maximum penalty per violation
5,000
penalties of suspension/revocation maximum of ------ fine
500$
basic hospital max liability ------- $
500,000$
group members have the right to continue coverage for ---- months
6 months
long-term care: preexisting conditions cant be excluded for more than ---- months
6 months
fines must be paid within ----- days
60
How far in advance must the policy forms be filed with the Superintendent?
60 Days
policy loan interest rates must not exceed -----% per year
8%
A written binder is NOT valid beyond
90 Days
In New Mexico which insurers if any are required to become members of the FAIR Plan?
All insurers authorized to write essential property insurance must be members
All of the following constitute unfair trade practices in New Mexico EXCEPT:
Charging different premiums for individuals of the same age based on their driving record
All of the following are examples of misrepresentation EXCEPT
Comparing the insurance policy of being offered with several competitors policies of the same type
Which of the following actions best illustrates the unfair trade practice of misrepresentation?
Describing the liability policy being considered by the prospective buyer as a way to avoid being sued
All of the following are examples if insurance rebating EXCEPT:
Distributing to participating policy owners
All of the following statements regarding the continuing education requirement for New Mexico insurance agents and brokers are correct EXCEPT:
Excess classroom hours accumulated during 1 renewal period must be carried forward to the next renewal period
To be eligible for an agent's license in New Mexico, an individual must meet all the following requirements EXCEPT:
Have a $1M life insurance policy
All of the following statements regarding premium rate filings in New Mexico are correct EXCEPT:
Rates may not contain a profit allowance
Agent Smith has just given a client a years worth of free movie tickets in return for purchasing an insurance policy? This illegal practice is commonly called
Rebating
All of the following are regarded as unfair claim settlement practices in New Mexico EXCEPT:
Refuse to pay a claim after conducting a reasonable investigation
All of the following statements regarding the New Mexico FAIR Plan are correct EXCEPT:
Replacement cost coverage is not available through the plan
To enforce compliance with the insurance laws of New Mexico, the Superintendent of Insurance is granted the authority to do all the following EXCEPT:
Serve warrants of arrest.
The basic purpose of the New Mexico Fraud Act is to permit
The Superintendent of insurance to investigate and detect insurance fraud more effectively
John is employed by a business that is covered under the New Mexico Workers Compensation Act. He files a claim for an injury to his back while working on the loading dock. Which of the following claims for workers' compensation would NOT be allowed?
The accident was caused by another employee's negligence
In New Mexico the Superintendent of insurance is appointed to office by?
the public regulation commission.