New Mexico Insurance Laws, Rules, and Regulations
Regulator and authority
Property and casualty insurance in New Mexico is regulated by the Office of the Superintendent of Insurance (OSI), headed by the Superintendent. The Superintendent examines insurers, reviews forms and rates, issues and revokes licenses, and enforces the Insurance Code, including the Unfair Trade Practices Act and unfair claims practices provisions. Insurers must hold a certificate of authority; producers must hold the correct line of authority before soliciting business.
Licensing essentials
Applicants must be at least 18, complete any required prelicensing education, pass the state exam, and file with the OSI. An appointment by an insurer authorizes the producer to act for that insurer, and the insurer must notify the OSI when the appointment terminates. Producers owe a fiduciary duty for premiums collected and are barred from rebating (offering inducements not stated in the policy), misrepresentation, twisting, and commingling funds. Continuing education must be completed each license term, including the required ethics hours, and licenses must be renewed before expiration; lapsed licenses may be reinstated with penalties. Because CE hours and renewal deadlines change, verify current figures with the OSI.
New Mexico specifics candidates see
- Auto liability minimums are $25,000 per person / $50,000 per accident for bodily injury and $10,000 for property damage (25/50/10).
- Uninsured/underinsured motorist coverage must be offered; a rejection must be in writing.
- New Mexico is a tort (at-fault) state, not a no-fault state - UM/UIM rather than PIP.
- Workers compensation is administered separately by the Workers' Compensation Administration.
- The New Mexico Property Insurance Program (NMPIP) is the residual market for property that cannot be placed voluntarily.
Trap: state-specific numbers are favorite test items - memorize 25/50/10 and remember UM must be offered, not assumed.