A. A resident individual applying for an insurance producer license shall, prior to issuance of license, personally take and pass a written examination. The examination shall test the knowledge of the individual concerning the lines of authority for which application is made, the duties and responsibilities of an insurance producer and the insurance laws and rules of this state. Examinations required by this section shall be developed and conducted under rules prescribed by the superintendent.
B. The superintendent may contract with an outside testing service for administering examinations and collecting the nonrefundable fee set forth in Section 59A-6-1 NMSA 1978.
C. Each individual applying for an examination shall remit a nonrefundable fee as prescribed by the superintendent as set forth in Section 59A-6-1 NMSA 1978.
D. An individual who fails to appear for the examination as scheduled or fails to pass the examination shall reapply for an examination and remit all required fees and forms before being rescheduled for another examination.
E. No examination shall be required:
(1) for renewal or continuance of an existing license, except as provided in Subsection D of Section 59A-11-10 NMSA 1978;
(2) of an applicant for limited license as provided in Section 59A-12-18 NMSA 1978;
(3) of applicants with respect to life and annuities or accident and health insurances who hold the chartered life underwriter designation by the American college of financial services;
(4) of applicants with respect to property and casualty insurance who hold the designation of chartered property and casualty underwriter designation by the American institute for chartered property casualty underwriters;
(5) of applicants for temporary license as provided for in Section 59A-12-19 NMSA 1978;
(6) of an applicant for a license covering the same kind or kinds of insurance as to which licensed in this state under a similar license within five years preceding date of application for the new license, unless the previous license was suspended, revoked or continuation thereof refused by the superintendent;
(7) of an applicant for insurance producer license, if the applicant took and passed a similar examination in a state in which already licensed, subject to Section 59A-5-33 NMSA 1978; or
(8) of an applicant for self-service storage insurance producer license.
F. An individual who applies for an insurance producer license in this state who was previously licensed for the same lines of authority in another state shall not be required to take an examination. This exemption is only available if the person is currently licensed in that state or if the application is received within ninety days of the cancellation of the applicant's previous license and if the prior state issues a certification that, at the time of cancellation, the applicant was in good standing in that state or the state's insurance producer database records, maintained by the national association of insurance commissioners, its affiliates or subsidiaries, indicate that the insurance producer is or was licensed in good standing for the line of authority requested.
G. A person licensed as an insurance producer in another state who moves to this state shall apply within ninety days of establishing legal residence to become a resident insurance producer. No examination shall be required of that person to obtain any line of authority previously held in the prior state except where the superintendent determines otherwise by rule.
History: Laws 1984, ch. 127, § 217; 1999, ch. 272, § 10; 1999, ch. 289, § 11; 2001, ch. 309, § 2; 2016, ch. 89, § 34; 2019, ch. 219, § 12.
ANNOTATIONSThe 2019 amendment, effective July 1, 2019, provided that an applicant for a self-service storage insurance producer license is not required to take an examination for licensure, and made certain technical amendments; in Subsection E, Paragraph E(3), after "chartered life underwriter", deleted "(C.L.U.)", and after "American college of", deleted "life underwriters" and added "financial services", in Paragraph E(4), after "chartered property and casualty underwriter", deleted "(C.P.C.U.)" and after "American institute", deleted "of" and added "for chartered"; and added Paragraph E(8).
The 2016 amendment, effective July 1, 2017, revised the language regarding examination requirements for insurance producers, and waived the examination requirement for insurance producers licensed in another state; in Subsection A, deleted "Each applicant" and added "A resident individual applying", after "for", added "an insurance producer", after the next "license", deleted "as agent, solicitor or broker", after "take and pass", deleted "an" and added "a written", and after "examination", deleted "authorized by the superintendent to establish the applicant's competence, knowledge and understanding of attendant responsibility and duties as to the insurance business to be transacted under the license applied for; except, that no such" and added the remainder of Subsection A, after the new language in Subsection A, added new Subsections B, C and D, and designated the remaining language from former Subsection A as Subsection E; in Subsection E, added "No", in Paragraph (3), after "respect to life", added "and annuities or accident", and after "health", deleted "or life or health", in Paragraph (4), after "respect to property", added "and", and after "casualty", deleted "surety, marine and transportation, and vehicle insurances, or any of them" and added "insurance", deleted former Paragraph (7) and redesignated former Paragraph (8) as Paragraph (7), in Paragraph (7), after "an applicant for", deleted "broker or agent" and added "insurance producer", and after "license, if", deleted "the superintendent is satisfied that"; and deleted former Subsection B and added new Subsections F and G.
Severability. — Laws 2016, ch. 89, § 71 provided that if any part or application of Laws 2016, ch. 89 is held invalid, the remainder or its application to other situations or persons shall not be affected.
The 2001 amendment, effective July 1, 2001, deleted Paragraph A(9) listing applicant for license only as title insurance agent.
The 1999 amendment, effective June 18, 1999, substituted "solicitor or broker or shall" for "solicitor, nonresident broker or nonresident agent shall" in the introductory language of Subsection A; updated statutory references throughout; and substituted "broker or agent" for "nonresident broker or nonresident agent" in Subsection A(8).
Section inapplicable to fraternal benefit societies. — Former 59-5-20 NMSA 1978 did not confer authority on the superintendent of insurance to license and examine agents of fraternal benefit societies. 1957 Op. Att'y Gen. No. 57-35.
An agent of a fraternal benefit society, who wishes to solicit life insurance business from the general public, need not be examined and qualified by the superintendent of insurance under the state's general insurance code. 1957 Op. Att'y Gen. No. 57-35.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 43 Am. Jur. 2d Insurance §§ 66 to 68.
Regulation or control of insurance agents or brokers, 10 A.L.R.2d 950.
44 C.J.S. Insurance § 85 et seq.