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Life and Health Insurance Producer Exam

Conduct (NM): practice questions

Our Life & Health Insurance bank has 6 questions on this topic. Here are 3 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · New Mexico

Which of these is NOT treated as an unlawful rebate on a New Mexico life, health or annuity contract?

  1. Promising dividends that the contract does not specify
  2. Giving a special favor as an inducement to apply
  3. Extending credit to pay a premium, at a reasonable interest rate
  4. Offering the client a share of the producer's first-year commission as an incentive to buy
Show the answer

C. Extending credit to pay a premium, at a reasonable interest rate — NMSA 1978, 59A-16-15 and 59A-16-16(A)(6).

Question 2 · New Mexico

An agreement among New Mexico producers to boycott an insurer, tending to restrain trade in insurance, violates which prohibition?

  1. Unfair claims practices
  2. Monopolistic practices
  3. Twisting
  4. False advertising of policies
Show the answer

B. Monopolistic practices — NMSA 1978, 59A-16-19.

Question 3 · New Mexico

A New Mexico producer is paid a fee by a customer for placing insurance. Before the customer buys, what must the producer do to also accept insurer compensation?

  1. Get documented acknowledgment and disclose the insurer compensation
  2. Nothing; fees and commissions may always be combined
  3. Refund the customer's fee once the insurer's commission is received
  4. Get the superintendent's written approval for the dual payment
Show the answer

A. Get documented acknowledgment and disclose the insurer compensation — NMSA 1978, 59A-12-29(A).

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