NM Life & Health study guide
NM Life & Health · Work through your exam, one topic at a time.
The New Mexico Life and Health Producer License is the credential that allows an individual to be licensed in New Mexico to sell life insurance and health insurance products in the state. Licensing and oversight are handled by the New Mexico Office of the Superintendent of Insurance (OSI), which describes its role plainly: it oversees and regulates most kinds of insurance in New Mexico and licenses the individuals and agencies that sell insurance in the state, including private health and life insurance. The NM Life & Health study guide has 4 sections and about 1,414 words.
01General Insurance Principles and Concepts
Insurance transfers pure risk (loss or no loss) from an individual to a pool; speculative risk (gain or loss, as in gambling or investing) is not insurable. For a risk to be privately insurable it should involve many similar exposure units, losses that are accidental and definite, measurable loss amounts, and losses that are not catastrophic to the whole pool at once.
387 words, about 2 min02Life Insurance
Term covers a stated period with no cash value: level, decreasing, increasing, renewable, convertible, and return-of-premium forms. Whole life is permanent, with guaranteed premium, cash value, and death benefit; variations include limited-pay and single-premium.
358 words, about 2 min03Health Insurance
Traditional indemnity plans reimburse after a deductible and coinsurance. Managed care changes incentives: HMO (closed network, primary care gatekeeper, capitation, often no deductible), PPO (network discounts, no gatekeeper, out-of-network allowed at higher cost), POS (HMO/PPO hybrid), and EPO (network only).
325 words, about 2 min04New Mexico Insurance Laws, Rules, and Producer Regulation
Insurance is regulated in New Mexico by the Office of the Superintendent of Insurance (OSI) , headed by the Superintendent. The Insurance Code requires a person to hold a valid license for each line (life, health, property, casualty) before soliciting, and to be appointed by the insurer; a license and an appointment are separate requirements, and one insurer's appointment does not authorize selling another insurer's products.
344 words, about 2 min